Ratings agencies downgrade Slovenia
Standard and Poor’s (S&P) and Moody’s investment services have both downgraded Slovenian debt this week.
S&P has cut the rate to A, citing growing political polarisation and policy uncertainty which is hampering the government’s ability to implement significant budget and policy reforms. The agency also talked of increasing asset quality problems at state-controlled and private sector banks, policy uncertainties leading to a contraction in external funding for the banking sector and increasing weakness in the domestic economy.
Earlier this week Moody’s Investors Service cut its bond rating for Slovenia to Baa2 from A2.
According to the Slovenian Press Service the government said it was “disappointed by the agency’s failure to take into account measures consolidating public finances and the political consensus on the golden fiscal rule and the management of bank claims.”