Fitch Affirms Slovakia's Rating at 'A-‌'‌, Outlook Stable

Bratislava, 31 October (TASR) - The Fitch Ratings agency has affirmed Slovakia's Long-Term Issuer Default Ratings (IDRs) at 'A-‌', with a stable outlook, the Finance Ministry has informed TASR. Rating agency Standard & Poor's (S&P) affirmed Slovakia's credit rating at 'A' with a stable outlook a week ago (23 October). Slovakia's new credit rating by Moody's is expected to be released by the end of the year as well. In its latest rating in June, the agency affirmed Slovakia's 'A3' credit rating with a stable outlook. Fitch sees Slovakia's key strengths in the eurozone membership, a credible macroeconomic framework, steady EU inflows and a developed export sector. It also positively views the resilience of the labour market and its contribution to domestic consumption. "Stable labour market conditions support household consumption," stated the agency. The agency also assessed inflation trends in Slovakia, noting that the overall inflation rate was dampened primarily by decline in food prices. "Inflation declined to 3.1 percent year-on-year (y-o-y) in September 2026 from around 4 percent at the start of the year, mainly due to lower food-price inflation, partly offset by transport prices," it said. According to Fitch, the way in which government debt is financed is also an important stabilising factor. The agency highlighted its long average maturity, which helps mitigate the impact of higher interest rates on public finances. "Slovakia's long average debt maturity of above eight years will continue to moderate the near-term impact of higher refinancing costs," it said. At the same time, it expects interest payments to remain below the the 'A' median for countries with a similar rating. Fitch also forecasts a more favourable development for economic growth, supported by improving external demand and the expansion of production capacity in the automotive industry. "We expect growth to strengthen to 1.8 percent by 2028, supported by improving external demand and new automotive capacity," stated the agency. The Finance Ministry views Fitch's decision as an important outcome of the government's efforts to maintain Slovakia's financial credibility at a time when it must contend with a recession while also preserving the population's standard of living. The ministry underlined that the rating affirmation comes amidst a backdrop of armed conflicts, internal political turmoil in several European capitals, the energy crisis, trade wars, the adverse impact of US tariffs and risks facing Europe in connection with the loss of competitiveness. In response, Finance Minister Ladislav Kamenicky (Smer-SD) highlighted that, following the recent approval of the 2027 budget, Slovakia has received its second positive rating from a major international credit rating agency within the span of just one week. "For months, the opposition has been spreading truly foolish doomsday scenarios about bankruptcy, a Greek-style crisis and similar nonsense. Today, the whole of Slovakia can see that our rating remains unchanged, our outlook is stable, the economy will grow faster than the eurozone average, inflation is falling, real wage growth is set to strengthen and exports will also increase once the Volvo car plant begins operations," stated Kamenicky, adding that Slovakia enjoys confidence of financial markets. ko