Skip to main content

Breaking News
  • KLM says it will not fly over the site of the Air Algerie crash but use other flight paths to the west of the area “as a precautionary measure”
  • Russia claims Ukrainian forces have fired “around 40” shells on its Rostov province (Reuters)
  • An earthquake has struck the coast of Alaska, USA with a magnitude of 6.1 (Reuters)
Slovenia’s shaky banks bring a downgrade from Fitch
close share panel

Share this article

Twitter Facebook
| Share this article
|

It was not unexpected – late on Friday the Fitch ratings agency downgraded Slovenia’s long-term foreign currency rating to BBB + from A minus.

It also warned there could be more cuts in the future on worries over the state of the country’s shaky banking sector which might mean it is the next eurozone nation to have to ask for a bailout.

The Slovenian government is pressing ahead with an overhaul of the ailing banks in a bid to avoid that.

Standard & Poor’s rates the country A-minus with a stable outlook. Moody’s Investors Service has it at Ba1 with a negative outlook.

Fitch said the outlook remains negative due to the declining economic and fiscal outlook.

Slovenia’s gross domestic product (GDP) is expected to contract by two percent this year and 0.3 percent next year, which would make one of only two countries in the eurozone remain in recession in 2014, Fitch said.

The budget deficit (excluding the costs of recapitalisation of its banks) should be five percent of GDP this year. It was four percent last year.

Copyright © 2014 euronews

More about:
| Share this article
|

Log in
Please enter your login details