Moody's Confirms Slovakia's A3 Rating with Stable Outlook

Bratislava, 13 December (TASR) - The rating agency Moody's affirmed Slovakia's A3 rating with a stable outlook in its periodic review on Friday, the Finance Ministry's press department confirmed to TASR, adding that the good news comes amidst increased global uncertainty, slowing growth among Slovakia's largest trading partners, and strained international trade and political relations. Slovakia's unchanged ratings were recently affirmed by renowned international agencies Standard & Poor's and Fitch Ratings. In its brief report, Moody's took into account the government's consolidation effort, the benefits of membership of the EU and the euro area, a high level of GDP per capita and a history of robust growth trends. According to the rating agency's analysts, macroeconomic and fiscal developments are in line with their expectations. "The stable outlook reflects balanced risks at the A3 level. The risks of deterioration in Slovakia's fiscal indicators are mitigated by the country's solid debt service capacity," Moody's stated in its report. In its assessment, the agency estimates that real GDP growth will gradually recover and reach 1.5 percent by 2027, supported by stronger domestic demand and the new car manufacturer launching its production in eastern Slovakia, which will significantly contribute to Slovakia's export performance. "The risks stemming from the economy's close integration into German manufacturing networks and from a high degree of trade openness are to some extent balanced by Slovakia's ability to attract new foreign investments," Moody's emphasised in its report. "We're facing strong economic headwinds, our largest trading partners are on the verge of recession, we feel the risks of trade wars and the impact of tariffs introduced by the USA, and on top of all that, we must heal public finances because the governments between 2020 and 2023 left them in the worst condition in the entire EU," said Finance Minister Ladislav Kamenicky (Smer-SD). "International ratings are crucial for Slovakia because of having an impact on the country's reputation on financial markets, the cost of state financing and overall investor confidence. In this way, Slovakia can save funds needed for financing the healthcare sector, social policies and other priorities that will benefit people," added Kamenicky. jrg