Fitch upgrades Slovenia, debt

Fitch Ratings said it upgraded Slovenia's long-term foreign and local currency issuer default ratings to A- from BBB+.

The issue ratings on Slovenia's senior unsecured foreign- and local-currency bonds were also upgraded to A- from BBB+.

The outlooks on the long-term issuer default ratings are stable.

The country ceiling was revised up to AAA from AA+ and the short-term foreign currency and local currency issuer default ratings were upgraded to F1 from F2.

The ratings on Slovenia's senior unsecured short-term foreign and local currency issues were also upgraded to F1 from F2.

The general government deficit declined to 2.9% of GDP in 2015 from 5% in 2014 and 15% in 2013, marking the country's exit from the European Union's (EU) Excessive Deficit Procedure, Fitch said.

The strong fiscal consolidation has been supported by structural reforms and GDP growth recovery since 2014.

It also reflects the completion of the state support package to the banking sector, which cost the budget 10% of GDP in 2013 and 0.9% in 2014.

Fitch expects the government deficit will continue to decline, to 2.3% in 2016 and 1.6% by 2018, mainly as a result of stronger economic growth.

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