S&P: Slovenia unchanged

Standard & Poor's said the AA and A-1+ ratings on the Republic of Slovenia remain unchanged following the defeat of the government's referendum on pension reform.

However, the defeat also indicates failing support for the minority center-left government, possibly complicating its prospects to meet budgetary targets through consolidation, S&P said, while at the same time raising the probability of a no confidence vote or early elections.

The agency said it believes the defeat is likely to lead to a stalemate in using changes to the pension system to address the budgetary challenges arising from Slovenia's aging population.

The current negative outlook reflects the possibility of a downgrade should Slovenia's general government debt burden fail to stabilize because of government failure to comply with its budgetary targets, S&P said.

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