Ljubljana, 05 January (STA) - Rating firm Dun&Bradstreet kept Slovenia's rating unchanged at DB2c in January, but it pointed to over reliance on exports and continued weakness of domestic demand, which it believes would weigh down on recovery.
"The recovery will only be sustainable if domestic consumption increases. Should external demand weaken...there is a risk that domestic demand will not be able to offset this," D&B said in its latest rating report.
The key business risk, meanwhile, is constrained cash flow due to high levels of indebtedness of the corporate sector, reduced access to finance and high share of unpaid dues, the latter already resulting in a chain of bankruptcies.
"Furthermore, business has been affected adversely by the government's slow decision-making and interference in business-sector strategy," D&B said.