Crisis: Slovenia, S&P downgrades sovereign debt to A- from A

Due to a potential growth of public debt

13 February, 17:57

La sede di S&P La sede di S&P

(ANSAmed) - LJUBLJANA, FEBRUARY 13 - Standard and Poor's has downgraded Slovenia's credit rating by one point, from A to A- due to a potential growth of public debt caused by the need to save the country's main state-owned banks and the uncertain perspective of economic growth, media in Ljubljana reported on Wednesday. The US agency said this year the aid 'which the Slovenian state is likely to give banks to clean their budget of bad debt will contribute to the growth of sovereign debt by a further three or four billion euros'. In such a case, Standard and Poor's said, public debt would reach 59% of GDP, much more than what previously anticipated.

According to the agency, the country should close the year with a 3% deficit as measures of fiscal stabilization introduced in 2012 and those announced for the next few months are giving good results. Their implementation however is still cause for concern due to the political crisis after the conservative government of Janez Jansa lost its majority in parliament.