Business News

D&B Concerned by Slow Export, Construction and Fiscal Reforms

Ljubljana, 02 September (STA) - Despite the moderate growth of the Slovenian economy, the rating firm Dun&Bradstreet is concerned in its September report about the sluggish exports, the weakness of the construction sector and the government measures announced for addressing fiscal imbalance. The country's rating remains stable at DB2c, indicating low risk.

According to D&B's Ljubljana-based partner company Bonitetna hisa I, the rating firm attributes the moderate economic growth mainly to the minimal growth in retail.

D&B gives much focus in the report to continued improvement in Slovenian-Croatian relations, which it says reduces tensions and eases political an foreign policy risks, as Slovenian PM Brut Pahor and his Croatian counterpart Jadranka Kosor found a solution for the issue of lost foreign currency deposits of Croatian savers in the defunct LB bank, which D&B decribes as "the Communist-era predecesor" of the NLB bank.

Commenting on the health of Slovenia's largest bank, the report also notes that it narrowly passed the recent EU stress tests and although it made the test's threshold, the bank is determined to inject more capital, particularly in light of its growing bad loan portfolio.

Among the increases in rating, Bonitetna hisa I points especially at Germany - as it is very important for Slovenian exports -, which now shares first place in the ratings with Australia, Canada, Switzerland and Norway.

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