RATINGS agency Standard & Poor’s has confirmed Slovakia’s A/A-1 credit rating, with a stable outlook. The agency said it trusts that the Slovak government will keep its obligation to squeeze the budget deficit below 3 percent of GDP in 2013, the SITA newswire reported on August 5.
“The stable outlook takes into account our expectations that the government will continue in its effort towards the fiscal consolidation and stabilisation of the government debt,” the agency stated, as quoted by SITA, adding that one of the positives of the country is a stable banking sector and low foreign debt.
Standard & Poor’s also reported that the potential of the Slovak economy to grow, as well as reforms to strengthen the competitiveness of the country and to reduce inequalities in the labour market, might propel the economy towards parity with other eurozone states.
Moreover, better fiscal development and realisation of the reforms on sustainability, including the reform of the judiciary, together with quicker convergence towards the European average, might lead to improvement of the rating, SITA wrote.
On the other hand, higher state deficits might result in the downgrading of the rating, the agency warned.
