Until April 24, S&P Global Ratings was the last of the “Big Three” agencies to maintain Slovakia’s credit rating at A+ with a negative outlook, citing lingering concerns over public finances and external economic headwinds.
Now, the agency has joined the other two – Moody’s and Fitch Ratings – and downgraded Slovakia by one notch to A with a stable outlook. This is the lowest rating the country has received from S&P since the beginning of 2012.
A credit rating serves as a measure of a country’s credibility in the eyes of investors. A higher rating generally means cheaper borrowing costs and easier access to capital, while a lower rating means the country may have to pay more to borrow, reflecting a higher perceived risk for creditors. Rating agencies review Slovakia’s standing regularly in the spring and autumn.
When S&P had previously downgraded Slovakia’s outlook, it signalled that the rating itself could be lowered in the foreseeable future.
According to Council for Budget Responsibility analyst Zuzana Mucka, the latest move reflects longer-term trends.
“In particular, S&P is drawing attention to the combination of high budget deficits, growing public debt and weaker economic performance,” she said. “This is a problem that has been gradually accumulating and is now being reflected in the outlook for public finances and the country’s growth potential.”
S&P expects Slovakia’s economy to grow by only 0.5% this year, in line with estimates from the National Bank of Slovakia and the Slovak Academy of Sciences. The agency also estimates the deficit could remain just below 5% of GDP.
According to the latest data from the Statistics Office, public finances ended 2025 with a deficit of 4.45%, largely due to one-off effects and postponed spending. Without further consolidation measures, the deficit is expected to widen again.
Although S&P lowered Slovakia’s rating to A, this does not automatically mean the country is seen as an unreliable debtor. The rating remains firmly within the investment-grade category, meaning Slovakia still has good access to financial markets.
However, S&P warned that further deterioration – such as significantly higher deficits or persistently weak economic growth – could lead to another downgrade in the future.
Opposition parties sharply criticised the government of Prime Minister Robert Fico over the downgrade.
Progressive Slovakia MP Stefan Kiss described the decision as a “harsh indictment”, arguing that the current state is a direct result of the government’s “irresponsible management of the country”. According to him, Slovakia cannot afford to allow its credibility to deteriorate further. He called on Finance Minister Ladislav Kamenicky (Smer) to assume political responsibility.
The KDH party said the downgrade confirms the government’s poor fiscal policy and reflects a missed opportunity for genuine consolidation. SaS echoed that criticism.
In response, Kamenicky said the downgrade had been expected and stressed that Slovakia remained within investment grade. According to him, the move should have no material impact on financial markets. He also rejected the opposition’s criticism, once again blaming previous governments for the state of public finances.
The non-parliamentary Demokrati party criticised Kamenicky’s comments, arguing that by saying the downgrade was expected, the government is effectively admitting it knew about the risks and failed to prevent them. (The Slovak Spectator)