PM Robert Fico (Smer). (source: TASR)
A day after Slovak MPs approved an amendment to the Penal Code, credit ratings agency Scope Ratings lowered Slovakia's rating from A+ to A as investors appeared to grow worried Slovakia could lose European funds over the law changes, reports Denník N daily.
The agency said the situation may have an indirect impact, for example, on the automotive industry, which is already facing challenges related to the transition to electric vehicles. The uncertainty may slow foreign investment, for example.
Another agency, Morningstar DBRS, maintained its rating for Slovakia, but lowered its outlook to negative.
The European Commission is threatening Slovakia with sanctions over the changes. It has already sent two letters to the government asking questions about the amendment. On the very day the amendment was approved, Justice Commissioner Didier Reynders called on Slovak Justice Minister Boris Susko to "stop the fast-track proceedings until the commission is sure that [the Slovak government] has dealt with the commission's reservations sufficiently".
Last December, the Fitch agency downgraded Slovakia's rating due to a deterioration in public finances and an unclear path for their recovery. Decisions by the S&P and Moody's agencies are expected in April and June.
Reynders warned the commission was ready to defend the EU’s interests and take action against Slovakia.
On February 6, the commission suspended appraisal of the fourth recovery plan payment for Slovakia, worth €900 million.
