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Moodyʼs upgrades Slovenia to ʼA3ʼ

Global credit rating agency Moodyʼs has upgraded Sloveniaʼs long-term issuer and senior unsecured bond ratings by one notch to ʼA3ʼ from ʼBaa1ʼ, changing the outlook to stable from positive. 

Photo by Daniel J. Macy / Shutterstock.com

Main drivers behind the upgrade the improvement of Sloveniaʼs debt burden and debt affordability metrics relative to peers, with Moodyʼs expectation that the debt reduction trend will resume next year as the economy recovers from the pandemic shock, and the significant improvement of the health of the banking system, as well as the completion of the privatization of the countryʼs largest banks, Moodyʼs said in a statement.

Although Moodyʼs expected Sloveniaʼs gross domestic product (GDP) to contract by 6.7% this year, it said the Slovenian economyʼs growth potential will remain broadly intact beyond the current crisis.