Moody's, a rating agency, changed the outlook on the Slovak banking system to negative from positive (it changed the outlook from stable to negative for another four European countries). The pandemic will result in economic contraction in the first half of 2020. Banks' problem loans will rise and increased loan loss provisions will reduce their profits. The agency points out that the Slovak banking sector has a strong liquidity position and substantial capital buffers. However, Slovakia's high household debts could exacerbate the impact of the downturn.