Moody's cuts Belgium to 'Aa3'; outlook negative

SAN FRANCISCO (MarketWatch)
Moody's Investors Service on Friday lowered Belgium's local- and foreign-currency ratings by two notches to Aa3 from Aa1.
The downgrade was because of increasing risks due to a deterioration in funding conditions for countries with relatively high levels of public debt such as Belgium and the potential impact they may have on the Belgian government's efforts to consolidate the budget and reduce debt.
There are also greater medium-term risks to economic growth for the very open Belgian economy due to ongoing deleveraging and fiscal restriction in the euro area, the ratings agency said.
The outlook on the ratings is negative.