BRUSSELS Dec 14 Standard & Poor's rating
agency said on Tuesday Belgium's sovereign debt could be
downgraded within six months if its inability to form a new
government persists and its debt trajectory worsens.
"We could lower the sovereign rating on Belgium one notch if
we conclude that the lack of consensus will result in the
government not being able to stabilise its debt trajectory to
move towards reforms," the ratings agency said in a statement.
"If Belgium fails to form a government soon, a downgrade
could occur, potentially within six months."
The agency added that it had concerns about Belgium's
general fiscal outlook, and specifically its target of reducing
its budget deficit to 4.1 percent of GDP next year.
The statement followed a downgrading of Belgium's outlook to
'negative', while its rating of AA+/A-1+ was maintained.