S&P downgraded Slovakia's credit rating by one notch to A over high fiscal deficits

S&P downgraded Slovakia's credit rating by one notch to A with a stable outlook. Slovakia retains S&P's 6th-highest rating, while holding the 7th-highest grade from both Fitch and Moody's. S&P cited slower-than-expected fiscal consolidation. It projects the public deficit will rise from 4.5% of GDP last year to 4.7% this year and further to 5.1% in the 2027 election year. The deterioration reflects weak economic growth and high spending on social transfers and defense. The agency expects low foreign investment inflows due to concerns over the country's foreign policy direction and an uncertain business environment. Demographic factors are expected to keep any rise in unemployment modest.

(sme.sk)