Ljubljana, 07 June (STA) - Ratings agency Standard & Poor's has raised Slovenia's long-term sovereign credit ratings on Slovenia by one notch to AA from AA-, and affirmed its A-1+ short-term ratings. The outlook on the ratings is stable.
The stable outlook reflects the expectation that Slovenia's economy and public finances "will remain resilient to external headwinds over the next two years," the agency said on Friday.
The rating reflects "the strength and resilience of its small and open economy, prudent fiscal management, and comfortable external buffers."
More broadly, the rating takes into account the benefits of eurozone membership, the country's manageable net debt, and the general effectiveness of the the institutional framework.
The rating could raise further if economic growth proves more resilient than projected, boosting GDP per capita without undermining the government's fiscal consolidation efforts or the economy's strong external position.
On the other hand, downward pressure on the ratings could build if Slovenia's budgetary position "deviates significantly and negatively from our budgetary forecasts, or if economic growth is much weaker than we project."
The Finance Ministry commented on the rating change by noting that Slovenia is now the highest-rated country in Central and Eastern Europe, its rating on a par with Ireland, Belgium and the UK.
