Slovenia’s Debt Rating Cut by Moody’s on Bank-Industry Risk
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Slovenia had its credit rating lowered one step to A1 by Moody’s Investors Service on the potential need for the government to support its banking system amid Europe’s debt crisis.
The euro-area nation’s banking industry has assets that are about 136 percent of gross domestic product, which is “relatively large when compared to other systems in eastern Europe,” Moody’s said yesterday in a statement. It assigned a negative outlook to Slovenia’s credit grade, the fifth-highest. Standard & Poor’s ranks the nation AA-, one level higher.