Scope Ratings downgraded Slovakia's sovereign rating

Scope Ratings downgraded Slovakia's sovereign rating from A+ to A, while Morningstar DRBS affirmed the rating but downgraded its outlook. Both are among the five agencies accepted by the European Central Bank (along with Moody's, S&P and Fitch). Scope points at a threat of EU fund suspension following the passage of a penal code reform, but also the rise in public debt and the new government's reluctance to consolidate public finances. Thus, public debt may grow to 68% of GDP in 2028 from 60% currently. The automotive sector faces challenges related to the transition to electric vehicles.

(dennikN.sk)