S&P Global Ratings changes Slovakia outlook to stable

S&P Global Ratings on Jan. 22 revised the outlook on Slovakia to stable from negative, citing reduced risks to the country's economic recovery.

"The stable outlook balances the consequences of the pandemic on public finances with our expectation of an economic rebound facilitated by a steady absorption of EU funds and continued investments from the private sector into Slovakia's productive capacity," S&P Global Ratings said.

Despite a buildup last year, Slovakia's debt is manageable amid historically low debt-servicing costs, according to the rating agency.

The rating agency expects Slovakia's economy to rebound by 4.3% this year from a projected contraction of 6.0% in 2020, thanks to the inflow of EU financial funds, some of which are tied to structural reforms. The country is then projected to post solid growth of about 3% through 2024.

S&P Global Ratings affirmed Slovakia's A+ long-term and A-1 short-term foreign- and local-currency sovereign ratings.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.