AA rating: Flanders is well positioned in the financial market

5 May 2021
Matthias Diependaele

With an AA rating, credit rating agency Fitch confirms that Flanders is in top form. “Despite the difficult circumstances of the coronavirus crisis, I have continued to insist on a healthy financial policy,” says Flemish Minister for Finance and Budget, Matthias Diependaele. “This is important not only for the effectiveness of the Flemish government, but also for the prosperity of all Flemings.” Fitch does however maintain a “negative outlook” because the outlook for Belgium is negative.

Fitch’s AA rating once again gives Flanders the highest rating of any government in this country. “Flanders remains one of the few regions in Europe to which Fitch assigns a rating above the sovereign government. An exceptionally unique situation,” Minister Diependaele emphasises. “The federal states usually have at most an equivalent rating to the federal government. This naturally confirms the good and credible position of our region.”

Belgium is the cause of the negative outlook

Despite this good rating, Flanders does get a “negative outlook”. “Because of Belgium’s negative outlook, Flanders pulls the short straw. Fitch is also keeping our outlook negative because they have no assurances about Belgium’s financial stability,” Minister Diependaele explains. “It is not up to me to calculate the bill for the federal government. What I do know is that a healthy financial policy increases confidence among investors and entrepreneurs. By attracting them, we provide jobs and job security. This is how we can increase the prosperity of citizens. Those who fail to recognise that bear a crushing political responsibility.”

Flanders passes the risk test

The AA score is a good report, Minister Diependaele concludes. “It is now our task to continue working on the path we have taken. With the broad Flemish review and the expenditure benchmark, we are preparing to return to a balanced budget. That is the best way to prepare ourselves for the next crisis. A healthy budget is the best life insurance for a government and its people.”

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