Investor Presentaiton
Ratings Reflect a Solid Profile in Turbulent Times
A
ARDAL
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 2016-22 (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
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
May - 2022:
Slovakia path to fiscal consolidation after the Covid-19
pandemic could be diviated by the country high dependance
on Russian oil and gas, which exposes the country to Energy
supply risks
Nevethelless, not only are Slovakia's debt levels considered
manageable combined with historically low debt service costs,
the country benefits from EU multianual financial framework
MOODY'S
Credit rating has remained stable between 2016 and 2022
Credit rating of A2 was recently reafimed in August 2022 with its
Outlook updated to negative
Aug-2022:
о The country public finances could be materially impacted by a
permanent reduction on gas supply form Russia takes place
Neverheless, Slovakia Credit rating reafirmation reflects the
country solid economic strenght, solid fiscal metrics and
relatively moderate exposure to evento risks
о
A clear and succesful energy supply diversification strategy
would support an improvement on its Credit Rating Outlook
Fitch Ratings
Credit rating has been 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 foreseable adverse shock from energy supply
challenges
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Source: Moody's, S&P and FitchView entire presentation