Standard & Poor's is set to announce its rating decision on the Brussels region today, June 13, 2025.

The potential for a downgrade from A+ to A follows a previous reduction in March 2025, which could trigger political change in a government-less Brussels.

Concerns about the financial implications of a downgrade include short-term liquidity issues and increased borrowing costs, as Brussels needs to refinance €500 million annually amid a €1.6 billion deficit.

A downgrade could lead to an additional interest rate increase of 0.1% to 0.3%, potentially costing Brussels an extra €30 million annually on its €10 billion debt.

The ongoing political stalemate in Brussels, lasting over a year since the elections, continues to heighten the financial risks associated with the region's debt.

Political leaders express skepticism that a downgrade will significantly influence party negotiations for forming a government, with many parties not likely to be deterred by the news.

Ahmed Laaouej of the Socialist Party is attempting to accelerate coalition talks among left-leaning parties, although skepticism about achieving consensus remains high.

However, the legal framework for oversight remains unclear and seems unlikely to materialize, as questioned by Alexia Bertrand of Open VLD.

Despite the urgent financial situation, some parties argue that they have already accounted for necessary budgetary adjustments regardless of the rating outcome.

Georges-Louis Bouchez, president of the MR party, indicated that a downgrade could prompt a reassessment of federal oversight over Brussels.