Moody's cuts Slovenia outlook to stable

Moody's Investors Service said it has changed the outlook to stable from positive on the Republic of Slovenia's Aa2 government bond ratings in light of the effects of the global economic crisis upon Slovenia's economic performance.

"In such circumstances, the probability has diminished that Moody's would upgrade the government's credit ratings in the next 12 to 18 months," said Jonathan Schiffer, vice president-senior credit officer in Moody's sovereign risk group.

As the global crisis has deepened, Schiffer explained, Slovenia's export markets have been affected negatively and this, in turn, has slowed the pace of growth and weakened the fiscal and external sector outcomes.

Still, Slovenia remains well-placed vis-à-vis its rating peers. He said the recovery of the small, open economy depends upon a pickup in demand from its major trading partners.

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