The Slovenia Times

Moody's Downgrades Slovenia's Sovereign Debt


Frankfurt-based Moody's Investor Services said in a statement late on Thursday that concerns that recapitalisation will further dent the Slovenian government's balance sheet in a time of economic uncertainty prompted its decision.

The agency said the downgrade was also prompted by increased risk "posed by the sustained deterioration in government funding conditions due to the euro area sovereign debt crisis".

The downgrade completes a review of Slovenia's sovereign debt rating started on 23 September, the agency said, adding that it had also put the country's rating on a negative outlook.

Back then the agency cut Slovenia's government bond ratings by one notch to Aa3 from Aa2. Another international rating agency, Fitch, followed suit only days later and has since warned Slovenia of another downgrade to its credit rating.


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