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Re: Slovak euros

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  • Martin Votruba
    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
    Message 1 of 19 , Mar 3, 2008
      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+".


      Martin


      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
      stronger. [...]

      The ratings could be upgraded if fiscal consolidation continues after
      Slovakia enters the Eurozone as committed by the government.
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