Fitch Ratings affirmed Slovenia’s rating at ‘BBB+’ and changed the outlook to positive from stable.
The improvement of the outlook reflects the newly adopted fiscal rule that is expected to support structural tightening, putting the debt ratios on a more robust downwards path over the medium term. Moreover, the government deficit is anticipated to tighten further. In addition, banks’ capacity to resist shocks has much improved.
Main factors that could lead to a positive rating action are budget deficit reduction consistent with government debt on a firm downward path, progress in the clean-up of bank and corporate balance sheets and sustained economic recovery supported by structural reforms. Fitch's sensitivity analysis does not anticipate any developments with a material likelihood of leading to a downgrade.
Contact:
Vanda Močnik Kohek
Senior Relationship Manager
Global Securities Services Slovenia
vanda.mocnik@unicreditgroup.si