Moody's alters Slovakia view to negative

Moody's Investors Service said it changed the outlook on the government of Slovakia to negative from stable. Concurrently, the agency affirmed the foreign- and domestic-currency senior unsecured and long-term issuer ratings at A2.

“The decision to change the outlook on Slovakia to negative from stable reflects the country's significant energy dependence on Russia. Given Slovakia's large industrial sector and high interconnectedness with the rest of the European Union (EU, Aaa stable), a permanent reduction in gas supply from Russia has the potential to significantly weaken the country's economy which would, in turn, negatively affect Slovakia's public finances and compound pre-existing structural challenges such as population ageing,” Moody’s said in a press release.

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