Business News

Moody's Follows up on Sovereign Downgrade

Ljubljana, 06 May (STA) - After downgrading Slovenia's credit rating last week, the ratings agency Moody's has now also cut the credit rating of the state-owned export and development bank SID Banka.

Moody's downgraded SID Banka's issuer and senior unsecured ratings by two notches to Ba1 from Baa2 with a negative outlook on the grounds that the bank is in full state ownership and that its liabilities benefit from a government guarantee.

Moody's also downgraded the government-guaranteed debt ratings of Factor Banka d.d. to Ba1 from Baa2.

The two actions reflect Moody's downgrade on 30 April of Slovenia's sovereign debt by two notches to Ba1, which is in the junk territory. The main reason cited was the situation in the banking sector and the assessment of a heightened probability that the country will need external assistance.

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