Investor Presentaiton
Ratings Reflect a Solid Profile in Turbulent Times
2ARDAL
2003 Agentura pre riadenie dlhu a likvidity.
2023 Deb and Liquidity Management Agency
Rating Trajectory Highlights and Key Topics
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Solid economic growth over recent years has facilitated the country
income convergence to its EU peers while maintaining a relatively
moderate debt burden and high debt affordability. Such characteristics
together with Slovakia's historical financial stability and expected EU
programmes funding have supported current credit rating, A/A2/A
However, its high reliance on Russian energy imports is increasing the
country vulnerability to geopolitical risk, which has driven to an outlook
revision to negative in recent months. Slovakia's outlook could be
upgraded to positive if the concerns over energy supply are alleviated.
Slovakia's reform plans to diversify energy supply will help this
Sovereign Ratings Trajectory 2016-23 (S&P, Moody's, Fitch)
AA-/Aa3/AA-
A+/A1/A+
A/A2/A
A-/A2/A-
BBB+/Baa1/BBB+
BBB/Baa2/BBB
Fitch
Moody's
S&P
BBB-/Baa3/BBB-
2016
2017
2018
2019
2020
2021
2022
2023
Credit Rating Agency Views
S&P Global
Ratings
Credit rating has remained stable between 2016 and
2022
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Slovak Republic's credit rating was reafirmed by the agency
while its Outlook was revised to negative in May 2022
November 2022:
We expect high inflation, the slowdown in the eurozone, and
persisting supply chain bottlenecks will harm economic
activity in Slovakia so that real economic growth slows to
0.4% in 2023
At the same time, we consider Slovakia's fiscal and external
debt levels to be moderate, and its debt service costs remain
historically low
MOODY'S
Credit rating has remained stable between 2016 and 2022
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Credit rating of A2 was recently reafimed in August 2022 with its
Outlook updated to negative
August 2022:
The country public finances could be materially impacted by a
permanent reduction on gas supply form Russia takes place
Neverheless, Slovakia's credit rating reafirmation reflects
the country solid economic strenght, solid fiscal metrics and
relatively moderate exposure to event risks
A clear and succesful energy supply diversification strategy
would support an improvement on its Credit Rating Outlook
Fitch Ratings
Credit rating was downgraded 1 time
between 2016 and 2022
Credit rating of A+ was downgraded to A in May
2020 and recently reafirmed in August 2022 with a
negative Outlook
May 2020: One notch downgrade from A+ to A.
Increasing economic uncertanty driven by the impact of
the Covid-19 pandemic
August 2022: Credit rating was reafirmed, but Outlook
was revised to negative. Main driver for such revision
was the foreseeable adverse shock from energy supply
challenges
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Source: Moody's, S&P and FitchView entire presentation