The Slovenia Times

Ratings agency Scope affirms Slovenia's A/Stable rating

Economy

Ljubljana - The German-based Scope ratings agency has affirmed A/Stable long-term credit ratings for Slovenia. Slovenia is a wealthy and resilient economy with favourable market access and debt profile, and a prudent fiscal policy, but it faces limited energy diversification, high public debt, labour market rigidities and weak demographics.

"The Stable Outlooks reflect Scope's opinion that risks to the credit ratings over the next 12 to 18 months are broadly balanced."

Scope said that the ratings could be upgraded if Slovenia's medium-term growth prospects improved notably through structural reforms "addressing long-term challenges including labour market rigidities and the adverse effects of an ageing population" and if the "fiscal outlook improved, with public debt on a firm downward trajectory".

On the other hand, the ratings could be downgraded if Slovenia's "medium-term growth prospects notably deteriorated due to, for example, substantial and sustained energy supply disruptions", if fiscal outlook weakened due to protracted fiscal deterioration or political fragmentation and policy uncertainty curtail the implementation of needed reforms or result in lower EU transfers or foreign direct investments.

Scope has forecast a 5.6% growth in GDP for Slovenia this year and 2.5% growth for next year, with the Finance Ministry noting that the forecast is higher than that of the European Commission.

Share:

More from Economy