Rating agency Moody’s has affirmed Slovakia’s A3 sovereign credit rating with a stable outlook in its regular review published on Friday. The rating remains unchanged from last year and has also recently been confirmed by the international agencies Standard & Poor’s and Fitch Ratings.
In a statement, the Finance Ministry said the assessment comes despite heightened global uncertainty, slowing economic growth among Slovakia’s main trading partners, and strained international trade and political relations.
Prime Minister Robert Fico welcomed the decision, saying it shows that the government’s consolidation measures are working. Speaking on a weekend public radio programme, he said that after three years of austerity, the government wants to stop “throttling” the economy.
However, experts from the Council for Budget Responsibility urged caution. Analyst Martin Šuster noted that Moody’s current assessment of Slovakia is the lowest since the country adopted the euro in 2009. “The fact that the rating is at its lowest level since euro adoption cannot really be considered positive news,” he said.
In its report, Moody’s cited the government’s consolidation efforts, the benefits of EU and euro area membership, a relatively high GDP per capita, and a history of robust growth trends. The agency said recent macroeconomic and fiscal developments are broadly in line with its expectations.
Moody’s expects real GDP growth to gradually recover and reach 1.5 percent by 2027, supported by stronger domestic demand and the start of production by a new car manufacturer in eastern Slovakia, which is expected to significantly boost export performance.
Sovereign credit ratings influence the interest rates at which both the state and citizens are able to borrow.
Source: TASR, STVR
