S&P: Slovak Republic unchanged

Standard & Poor's said that the revaluation of the Slovak koruna on March 16 does not have any impact on the sovereign credit ratings on the Slovak Republic (A/stable/A-1).

Slovakia remains on track to join the Eurozone in 2009 following the revaluation, the agency said, noting that the 8.5% revaluation of the Slovak koruna's European Exchange Rate Mechanism parity rate was requested by the Slovak central bank and agreed to by the European Central Bank, Eurozone countries and the other countries that are in ERM-II.

This revaluation will increase the Slovak central bank's scope for monetary policy and help maintain price stability, S&P added.

The ratings on Slovakia reflect its rapid progress in public sector and welfare reform, its strong growth prospects and the prospect of entry into the Eurozone by 2009, S&P said, noting that the ratings remain constrained by the country's only moderate wealth levels and the unclear perspective for future economic and fiscal policy.

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