Wednesday, May 1, 2013


Moody's rating agency's double notch downgrade of Slovenia to junk status puts the country, already in a precarious condition, firmly in the spotlight again. Concerns are rising that the heavily-indebted country may be next inline for a bailout from international creditors, but some analysts believe Moody's bleak prognosis is not
necessarily a bad omen. The agency reduced the country's credit rating to Ba1 from Baa2 with a negative outlook on Monday evening. Ina statement it attributed the cut to the state of the country's banking sector, the deterioration of the government's balance sheet and the uncertain funding prospects which "heighten the probability that external assistance will be needed".

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