Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's affirms Slovakia's A2 rating, maintains positive outlook

09 Mar 2018

London, 09 March 2018 -- Moody's Investors Service, ("Moody's") has today affirmed Slovakia's A2 long-term issuer and senior unsecured ratings and maintained the positive outlook.

The affirmation of the A2 rating with positive outlook balances the following key rating factors:

(1) Slovakia's strong growth track record and favourable medium term prospects, supported by investment and some progress with structural reforms;

(2) The issuer's moderate and gradually-declining government debt burden and limited contingent liabilities;

(3) Recent negative political developments, which illustrate long-standing challenges to institutional strength, and which could have an adverse impact on economic policies and on the relationship with the EU.

Slovakia's long-term local and foreign currency bond and bank deposit country ceilings remain unchanged at Aaa. Its short-term foreign currency bonds and bank deposits country ceilings also remain unchanged at Prime-1(P-1).

RATINGS RATIONALE

DECISION TO AFFIRM A2 RATING AND MAINTAIN THE POSITIVE OUTLOOK

Moody's has assessed Slovakia's credit profile in light of developments relevant to the drivers of the positive outlook changed in April 2017. The rating agency's decision to maintain the positive outlook reflects its view that the positive economic and fiscal trends identified in the earlier action continue. However, the decision to affirm the A2 rating reflects its conclusion that further time will be needed to provide assurance that the damage done to the sovereign's credit profile in the early years of the decade can be undone. For now, Slovakia's economy, its balance sheet and its institutions remain consistent with A2 peers, particularly taking into account the near-term political and longer-term demographic challenges facing the sovereign.

FIRST DRIVER: SLOVAKIA'S STRONG ECONOMIC PERFORMANCE, SUPPORTED BY SOME STRUCTURAL REFORMS

The first driver of the rating affirmation with positive outlook is Slovakia's continued strong growth track record and favourable medium term prospects. Growth remains poised to accelerate over the next few years, driven by a combination of strong private consumption, investment (especially into the automotive sector) and rising net exports, the latter benefitting from stronger EU import demand. Slovakia's strong and sustained real GDP growth -- which we expect to average around 3.2% between 2012 and 2021 -- continues to benefit from the expanding industrial sector.

The contribution of net exports to growth is expected to continue to grow over the medium term, as production from new automotive plants gathers momentum. EU-related structural and investment funds -- which will amount to about 2.9% of projected GDP in the 2014 to 2020 programming period -- are expected to support investment, particularly in infrastructure, education and healthcare, further enhancing medium term growth.

A number of structural weaknesses stand in contrast to those positive trends. Slovakia is a very open economy, highly influenced by conditions in key export markets. The sharp recession experienced in the first year of the global financial crisis illustrates that reliance, and while the economy recovered quickly the crisis left an indelible mark on the government's finances that is taking many years to erase. The important role played by the automotive industry, particularly in driving export growth, is a positive feature but also illustrates the potential impact of a downturn in the fortunes of an industry which is both vulnerable to the cycle and likely to face longer-term structural challenges. Demographic pressures are marked and will rise.

The positive outlook reflects Moody's acknowledgement that policymakers understand and are seeking to address those weaknesses. Reforms are under way to the business environment aimed at promoting investment to deepen Slovakia's integration in regional and global value chains. Others are intended to address skill shortages including through measures that encourage a return of Slovaks working abroad alongside migration, as well as measures aimed at bringing more people into Slovakia's labour force. Those and other reforms will be important if underlying weaknesses in Slovakia's economy are to be addressed and the positive path of growth is to be assured.

SECOND DRIVER: MODERATE AND GRADUALLY DECLINING GOVERNMENT DEBT BURDEN WITH LIMITED CONTINGENT LIABILITIES

The second driver for the rating affirmation with positive outlook is the continuing gradual improvement in Slovakia's fiscal strength, as exemplified by the continued improvements in the headline as well as structural fiscal balance due to fiscal consolidation. Slovakia's fiscal consolidation is being driven by improved tax collection that bolstered government revenues and the economy's high nominal GDP growth.

The combination of deficit reduction and robust economic growth has naturally had a positive impact on general government debt trends. Slovakia's debt burden peaked at 54.7% of GDP in 2013, stood at 51.4% of GDP in 2017, and our base case is that it will steadily decline in coming years, reaching 45% of GDP by the end of the decade. The positive outlook reflects Moody's view that even if debt levels remain quite high, and well above those seen at the start of the decade, a combination of growth and gradual consolidation will see the government's burden decline still further over the coming years.

Slovakia also has one of the lowest contingent liability burdens stemming from debt of public enterprises among EU countries, providing further assurance regarding the government's fiscal position.

THIRD DRIVER: RECENT NEGATIVE POLITICAL DEVELOPMENTS WHICH REFLECT LONG-STANDING INSTITUTIONAL CHALLENGES

Set against those continuing positive trends, today's rating also reflects emerging concerns regarding the strength of Slovakia's institutions and the resilience of its policy-making following recent political events. The well-publicised killing of a journalist and his partner, and underlying concerns regarding transparency and accountability in the use of EU funds, have triggered a political crisis.

Narrowly, that crisis raises the risk of the coalition government (comprising Slovak National Party, the Bridge-Party of Co-operation, and the Direction -- Social Democracy party) not completing its four-year term, which would place in doubt the government's continued commitment to economic and fiscal reform. At a deeper level, recent events, and relatedly the long standing problems relating to utilization of EU funds, raise doubts regarding the control of corruption and the strength of voice and accountability in overall governance.

Moody's decision to affirm the A2 ratings partly reflects the rating agency's view that the coming months will provide further insights regarding the implications of recent events for Slovakia's institutional strength and the future direction of economic and fiscal policy.

WHAT COULD CHANGE THE RATING -- UP/DOWN

Moody's would consider upgrading Slovakia's sovereign rating to A1 were there to be further sustainable convergence to EU levels of economic development together with a continuation of structural reforms likely to address underlying structural weaknesses, allied with a continued focus on fiscal consolidation and the restoration of fiscal buffers to levels consistent with A1-rated peers. A resolution of current political tensions which supported those positive economic and fiscal trends and which did not undermine Moody's assessment of the effectiveness and predictability of Slovakia's institutions would also be needed.

Downward pressure that could lead to a stable outlook and eventually a downgrade of the rating could develop if Slovakia's current political tensions were to escalate, resulting in policies that would undermine confidence in economic growth and fiscal consolidation. Given the dependence of Slovakia's growth on EU funds, marked worsening of relations with the EU would also put downward pressure on the rating.

GDP per capita (PPP basis, US$): 31,331 (2016 Actual) (also known as Per Capita Income)

Real GDP growth (% change): 3.3% (2016 Actual) (also known as GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 0.2% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -2.2% (2016 Actual) (also known as Fiscal Balance)

Current Account Balance/GDP: -1.5% (2016 Actual) (also known as External Balance)

Level of economic development: High level of economic resilience

Default history: No default events (on bonds or loans) have been recorded since 1983.

On 07 March 2018, a rating committee was called to discuss the rating of the Slovakia, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have materially increased. The issuer's fiscal or financial strength, including its debt profile, has materially increased. Issuer institutional strength has not changed.

The principal methodology used in these ratings was Sovereign Bond Ratings published in December 2016. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Zuzana Brixiova
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Yves Lemay
MD - Sovereign Risk
Sovereign Risk Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.