Ratings agency Fitch Ratings has affirmed the Slovak Republic’s credit rating at ‘A+’ with stable outlook, according to a statement released yesterday. The agency cited strong economic growth, low inflation and a relatively strong banking sector as the reasons.
“Slovakia’s rating continues to be supported by the economy’s track record of strong growth, low inflation and a relatively strong banking sector,” said Douglas Renwick from Fitch’s Sovereign group. “However, with a budget deficit of 7.9% in 2010, the government will need to implement sustained fiscal consolidation to prevent downward pressure on the rating,” he added.
The government still has an uphill struggle to battle with the huge budget deficit it inherited, but it hopes to get it down to 4.9% of GDP this year, then 3.8% in 2012 and 2.9% in 2013.