Fitch revises Slovakiaʼs outlook to negative

Ratings

Photo by Konektus Photo / Shutterstock.com

Fitch Ratings changed on Friday Slovakiaʼs sovereign credit rating outlook to negative from stable and affirmed the debt grade at ʼAʼ. 

Photo by Konektus Photo / Shutterstock.com

The ratings company said that main trigger behind the decision is Fitchʼs view that the loss of revenues associated with the slump in growth combined with fiscal stimulus measures will lead to a larger and more prolonged widening of the fiscal deficit than previously expected, negatively impacting debt dynamics.

Fitch said it expects the fiscal balance to reach -8.1% of GDP (gross domestic product) in 2020 (previous review: -7.7%, 2019: -1.3%) before recovering modestly to -6.3% in 2021 and -5.4% in 2022 (current peer median -5.4%). Standard & Poorʼs credit rating for Slovakia stands at ʼA+ʼ with negative outlook.

Moodyʼs credit rating for Slovakia was last set at ʼA2ʼ with stable outlook. DBRSʼs credit rating for Slovakia is ʼAʼ (high) with stable outlook. 

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