Fitch Affirms Slovakia’s A+ rating with stable outlook

By bne IntelliNews February 28, 2014

Fitch Ratings said it has affirmed Slovakia's long-term foreign and local currency issuer default ratings (IDR) at A+. The outlook is with stable. The issue ratings on Slovakia's senior unsecured foreign and local currency bonds have also been affirmed at A+, the country ceiling has been affirmed at AAA and the short-term foreign currency IDR at F1.

Fitch noted that the ratings have been affirmed as Slovakia's economic growth is expected to continue outperforming the eurozone average, forecasting the GDP growth at 2.4% for 2014, higher than the expected Eurozone average of 0.9%.

According to Fitch, Slovakia’s macro-prudential framework is sound with a solid banking sector and low level of private sector indebtedness. The country’s current account is expected to remain in surplus in 2014-2015, boosted by an improving trade surplus. The rating agency also forecasts that the general government deficit will remain below the Maastricht threshold of 3.0% of GDP this year, at 2.8%, slightly higher from 2.6% in 2013. However, the country is relying on one-off rather than structural measures. Fitch also forecasts that general government debt will end up in 2013 at around 55% of GDP, below Slovakia's self-imposed constitutional debt threshold of 57% of GDP.

Slovakia’s ratings could be affected negatively if the government fails to implement credible fiscal consolidation that would stabilise and ultimately reduce the public debt-to-GDP ratio. Severe negative growth shock from the eurozone that damages economic and fiscal stability could also affect the ratings, Fitch said.

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Poland secures key permit for gas link with Slovakia

Polish state-owned gas grid operator Gaz-System has secured an environmental permit for the construction of a gas pipeline that will be part of a planned gas link with Slovakia, Gaz-System announced ... more

Labour shortage taking on crisis proportions, warns Slovak PM

The growing labour shortage bears the hallmarks of a crisis, Slovak Prime Minister Robert Fico said on April 4. While keen to boast of the health of the economy under his continued watch, Fico was ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss