Moody`s cuts Slovenia`s credit rating one notch to A1
Baku, December 23 (AZERTAC). Moody`s Investors Service on Thursday cut the sovereign foreign currency credit rating for Slovenia one notch to A1 from Aa3, citing increasing pressure on the government`s balance sheet that could arise from a potential need to further support the nation`s banking system.
The outlook for the credit rating is negative, Moody`s said in a statement. Slovenia is rated one notch higher, at AA-minus, by both Standard & Poor`s and Fitch Ratings.
Moody`s also said the downward pressure on the rating stems from a deterioration in government funding conditions due to the ongoing euro zone credit crisis.
Fitch Ratings last week said it had put Slovenia on watch for a possible downgrade, and expects to complete that review by the end of January.
Slovenia was the fastest growing euro zone member in 2007 but was badly hit by the 2008-2009 global crisis due to its dependency on exports. The economy shrank by 8 percent in 2009.
After a year of recovery, Slovenia`s economy contracted by 0.5 percent in the third quarter of 2011 signaling another recession might be coming.
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