Re: Slovak euros
- Standard & Poor's assumes that Slovakia will be able to adopt the euro
on Jan. 1, 2009, and has consequently increased the country's rating
(see excerpts below). "AA+" is their next best rating after "AAA."
The whole scale has about 9 grades, most of which can be modified with
+/-. AA+ for Slovakia may be the highest rating of a post-communist
country, but I don't have a reliable list. Recent, but not
necessarily the latest ratings appear to show Slovenia at "AA"; the
Czech R. "A"; Poland "A-"; Hungary "BBB+".
x x x
March 3, 2008 -- Standard & Poor's Ratings Services said today it
revised its outlook on the Slovak Republic to positive from stable and
raised the transfer and convertibility assessment on the Republic to
AA+ from AA. These actions reflect our expectation that Slovakia will
join the Eurozone in 2009. [...]
Eurozone membership will alleviate external financing pressures
resulting from the economy's moderate external indebtedness, and could
support further improvement in the creditworthiness of the sovereign.
With monetary and exchange rate policy autonomy ending as EMU entry
occurs, however, the imperative for prudent fiscal policy will be
The ratings could be upgraded if fiscal consolidation continues after
Slovakia enters the Eurozone as committed by the government.