Debts constrain Slovakia’s rating

One week after the Standard and Poor's (S&P) agency confirmed Slovakia's Rating at 'A+' with a Stable Outlook, another agency, Fitch, gave Slovakia the same rating. The country has earned it mainly due to the country's sound macro-economic performance, supported by sustained foreign capital inflows and European Union (EU) and Eurozone membership. Nonetheless, Fitch noted that the rating is constrained by high net external debt, forecast at 28.1% of GDP versus the peer 'A' median of 9.6% of GDP in 2018. Another point of concern is rapidly rising household indebtedness, currently at around 40% of GDP, Fitch pointed out. The country's debt has more than doubled over the last decade, a condition that could also increase vulnerabilities to shocks if left unchecked.