Fitch changes Slovenia to positive

Fitch Ratings said it revised Slovenia's outlook to positive from stable while affirming its long-term foreign- and local-currency issuer default ratings at BBB+, senior foreign- and local-currency bonds at BBB+ and country ceiling at AA+.

In changing the outlook, the agency said it expects the newly adopted fiscal rule to support structural budget tightening, putting the debt ratios on a more firmly downward path over the medium term, although potential divergence within the ruling coalition poses implementation risk.

After a sharp increase in recent years, Fitch expects government debt will peak in 2015 at 81.8% of GDP (from 22% in 2008) before slowly declining due to gradual fiscal tightening and growing nominal GDP.

Following government interventions, banks' capacity to resist shocks has improved considerably, the agency said.

Finally, the current account has switched to surplus from deficit due to stronger exports following gains in competitiveness, weaker domestic demand relative to the pre-2008 period, lower oil and commodity prices and reduced external interest repayments, Fitch noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.