Standard & Poor's (S&P) Ratings Services raised its long-term sovereign credit rating for Slovakia to 'A' from 'A-'. At the same time, the country's short-term rating was raised to 'A-1' from 'A-2'. The outlook is stable, announced S&P on its website on December 19.
The change gives Slovakia the highest rating of all states in the Visegrad Four regional grouping, which besides Slovakia includes Poland, Hungary, and the Czech Republic.
"The upgrade reflects Slovakia's rapid progress in public sector reform, its strong growth prospects, and the prospect of entry into the Eurozone by 2009," said Standard & Poor's credit analyst Kai Stukenbrock.
The ratings remain constrained by the country's moderate wealth and inefficient social security system, said S&P.
"At $8,520 (Sk270,000) in 2005, per capita wealth in Slovakia is significantly below the median for an 'A' rating ($12,100, or Sk383,000). Further public sector reforms and the tackling of structural and regionally uneven unemployment are central to promoting sustainable economic growth," stated S&P.
Compiled by Martina Jurinová from press reports
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