The rating agency Moody’s Investors Service downgraded two notches Tuesday note Slovenia, relegating among borrowers at risk (“hedge”), because of the situation of its banks and the deterioration of public accounts .
evolutionary perspective of this paper is “negative “, which means Moody’s does not exclude degrade back to medium term.
The agency believes that the uncertainty about the funding of the country “ reinforce the possibility that external assistance is required .”
Moody’s is more severe than its major competitors to the small alpine country, which is part of the euro area. Both Fitch Ratings and Standard & Poor’s noted indeed a step above in “ A-” and always in the category “investment ” reserved for reliable borrowers.
snub inflicted by Moody’s has forced the Slovenian authorities to suspend hastily bond issue that would have allowed the country to raise 2.2 billion euros in debt five and ten years. The Ministry of Finance has blocked the operation even before the official announcement of the agency, highlighting “ a probable decision on rating .”
According to the business daily Finance, the operation had yet been well received by investors, with demand exceeding supply twice.
center-left Prime Minister Alenka Bratusek, in place since March, is currently working on remedial measures to be presented to the European Commission on May 9
Excluding recapitalization of banks, Slovenia has enough cash to last until the end of the year, Moody’s rating.
Despite the difficulties of its banks, the former Yugoslav republic had indeed succeeded earlier this month to raise 1.1 billion euros in the short term.
Belga
No comments:
Post a Comment