Frankfurt - Rating agency Fitch has affirmed Slovenia's long-term foreign-currency issuer default rating at A with a stable outlook, a move that the Slovenian Finance Ministry said was fresh evidence that Slovenia remained a stable and trustworthy country.

The agency said in a rating action issued on Friday that Slovenia's rating was "supported by high governance and human development indicators and a credible policy framework supported by EU membership."

These are balanced against currently rising and high public debt relative to 'A' rated peers, the economy's small size, and slow progress in implementing structural reforms to address medium-term fiscal and growth challenges associated with an ageing population.

The stable outlook "reflects a degree of economic resilience to the Covid-19 pandemic owing to a reduction in recent years of external imbalances and a track record of fiscal prudence".

Fitch expects the short-term economic outlook to remain challenging given continuing challenges related to the coronavirus pandemic.

It expects the economy to contract by 6.9% this year before growing at 4.1% in 2021, but notes that the labour market will remain resilient thanks to government support measures.

The rating comes a week after Standard & Poor's affirmed Slovenia's AA- rating with a stable outlook.