S&P Downgrades Slovenia's Outlook to Negative
The agency said the downgrade was a result of political uncertainties stemming from the recent resignation of the government which has led to the early elections.
As it is hard to predict when a new government would be formed, there are risks to the implementation of policies to resolve "economic and fiscal pressures", the rating agency said in a press release.
"We believe that political uncertainties may limit the government's ability to implement structural reforms and strengthen the banking system, boost public finances, and enhance economic growth generally."
Nevertheless, the rating agency believes that while "Slovenia's policy settings are becoming less predictable", the government's National Reform Programme 2013-2014 and Stability Programme 2014 provide "useful policy anchors".