Moody’s confirms Wallonia’s rating at A3, with a negative outlook

LThe Moody’s rating agency confirmed, on Friday evening, Wallonia’s rating at level A3, with a negative outlook, indicates the office of the Walloon Minister-President and Minister of the Budget, Adrien Dolimont.

The region’s outlook had changed from stable to negative on October 15, with the deterioration of the Belgian federal state’s outlook a few days earlier leading to a similar downward revision for the federated entities rated by Moody’s.

In updating its credit opinion, the rating agency highlights Wallonia’s strengths, including “a mature and solid legislative context, with well-defined responsibilities, within a Belgian institutional system that is nevertheless complex”.

Moody’s also praises “sharp but prudent debt management which guarantees uncontested access to the market” as well as high revenue flexibility.

On the other hand, it points to the very high debt burden of the region due to recurring financing deficits and an economy which suffers from comparison with neighboring regions and countries.