Fitch Ratings Confirms Slovakia's Rating at A+ with Stable Outlook

Bratislava, November 9 (TASR) - Fitch Ratings agency confirmed Slovakia's rating at A+ with a stable outlook on Friday (November 8), TASR has learnt from the Finance Ministry's press department. The international rating agency cited stable influx of direct foreign investments, favourable structure of Slovakia's foreign debt and the country's institutional strength as chief factors behind Slovakia's positive rating. Sufficiently capitalised and liquid banking sector were among positive factors as well. "On the other hand, Slovakia's rating position is weakened by the economy's high dependence on the automotive industry and stagnating prospects for Germany's GDP growth," stated the Finance Ministry. As a result of drop in net exports, real GDP growth in Slovakia decelerated to 2 percent in the second quarter of 2019. Fitch Ratings predicts real GDP growth in Slovakia to amount to 2.5 percent in 2019 and 2.7 percent in 2020. Meanwhile, Fitch Ratings views short-term risks for Slovakia's automotive industry related to its ties to the German supply chain, Brexit and the US pro-export policy as manageable for Slovakia. ko