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Fitch downgrades Slovenia to 'BBB+'; Negative Outlook

FXstreet.com (San Francisco) - Fitch ratings downgraded Slovenia's sovereign debt rating from 'A-' to 'BBB+' according to a recent press release.

The Agency says that the country's outlook is 'negative. "The macroeconomic and fiscal outlook has deteriorated significantly since Fitch's last rating review of the Slovenian sovereign in August 2012. The agency now forecasts a 2% contraction in real GDP in 2013 and a decline of 0.3% in 2014," Fitch commented.

"Fitch now projects that a larger GGD than previously expected, a poor macroeconomic outlook, and costs deriving from bank recapitalization and the issuance of state guarantees for "bad bank" (BAMC) bonds will cause gross general government debt (GGGD) to rise to 72% of GDP in 2013-14, up from 22% in 2008."

Overall, Fitch forecasts that "the general government deficit (GGD, net of bank recapitalization costs) will rise to 5% of GDP in 2013 from 4% in 2012, against a target set down in the end-2012 budget law of 2.8%."

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