Moody's Cuts Credit Ratings For Slovenia

By Salon Staff

Published December 23, 2011 12:09AM (EST)

Moody's Investors Service has downgraded the credit ratings for Slovenia, saying the country's government faces risks from the eurozone debt crisis and the potential that it may need to step in and provide financial support to banks.

The ratings firm on Thursday lowered the nation's local and foreign currency government bond ratings by one notch to "A1" from "Aa3." It has a negative outlook on the ratings.

The move comes amid growing uncertainty over the prospects for eurozone countries to contain the region's debt crisis.

Moody's said the eurozone debt and funding crisis has exposed significant vulnerabilities in the largest financial institutions in Slovenia. The firm noted that, since the outset of the crisis, Slovenian banks have needed the government to provide debt guarantees and capital.

Salon Staff

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