Fitch downgrades Slovenia by one notch to BBB+, outlook Negative (the country is still worthy of...

|By:, SA News Editor

Fitch downgrades Slovenia by one notch to BBB+, outlook Negative (the country is still worthy of an investment grade rating apparently) citing, among other factors, "a significant divergence between official and Fitch estimates of bank recapitalization costs." Recall that NPLs at state-controlled banks sum to nearly 30% of total loans (total NPLs at ~20% of GDP), and many of these will need to be transferred to a state-run "bad bank." (Previously: Moody's takes Slovenia into junk territory)