Euro rises as Standard & Poor’s affirm Slovenia rating of A- with stable outlook
Standard & Poor’s has affirmed Slovenia’s rating at A- with a stable outlook. The euro reacted positively.
S&P affirms Slovenia at A-/A-2; outlook stable. EUR likes – moves up about 15 pips straight away
— Yogesh Chandarana (@Yogi_Chan) July 26, 2013
S&P said that the country's strengths are being balanced out by a sharply increasing government debt. It expects that Slovenia's fiscal consolidation programme will stabilise net general government debt at around 70 per cent of GDP.
However, the country would be at risk of a downgrade if: banks weaken further; government debt rises; or policymakers fail to decisively implement structural economic reforms.
Separately, Fitch has affirmed Serbia's outlook at BB- with a negative outlook.