Bloomberg News

Fitch May Remove Belgium’s Negative Rating Outlook, Renwick Says

October 26, 2012

Fitch Ratings may remove its negative outlook for Belgium if the nation keeps showing determination to reduce its deficit, according to Douglas Renwick, a director at the company.

“Certainly I think the risks there again have come off somewhat,” Renwick said in an interview on Bloomberg Television’s “On The Move” with Francine Lacqua in London. “They’ve got a very good record in budget consolidation, meeting their targets.”

Fitch cut the euro-area nation’s credit rating by one step on Jan. 27 to AA, the third-highest level, and said the country was at risk of a further downgrade.

If Belgium were to show early next year that “they’re continuing to bring their deficit down well below 3 percent, then that would likely cause us to stabilize the outlook,” Renwick said. Belgium reported a budget shortfall of 3.7 percent last year.

Belgium’s 10-year bonds rose for the first time in five days, with the yield falling three basis points, or 0.03 percentage point, to 2.45 percent at 12:04 p.m. London time.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net


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