Slovakia’s Ministry of Finance has criticised Moody’s international rating agency for its lowering of Slovakia’s rating to "A3" with a stable outlook,  accusing it of political bias.

Moody’s rating is now the lowest one for Slovakia since 2003, liberal daily SME noted, and it is also the second lowering since the government took office in October 2023,  when Fitch lowered its ranking. Fitch and Standard & Poor’s kept their ranking for Slovakia this year. 

In a statement shared by the country’s media, the ministry said it “considers several assessment judgements” by Moody’s as “improper, imprecisely interpreted and one-sided”.

The ministry added that “we consider such political commenting based on unfounded sources to be a reputation risk for the agency itself”, while it also stressed that “it derives from the assessment that Slovakia is economically in a good condition and the agency does not see risks in financing of our debt”. 

Slovakia’s left-right government of populist Prime Minister Robert Fico has faced criticism from the EU, liberal media and international media institutions over the sweeping changes it has introduced to the country’s judiciary, police, public media and even leading cultural institutions in the country.

Domestic opposition and other critics have been ringing alarm bells, warning that Fico and his Smer party are remaking Slovakia along Viktor Orbán’s authoritarian model seen in neighbouring Hungary. In the latest development, Fico has faced tensions and disunity inside the ruling coalition, which now relies on the slimmest possible majority of 76 legislators.  

Moody’s pointed to the political tensions in the country and acknowledged “institutional issues” in the country.  “A comprehensive reform programme on the judiciary and the media will weaken the country’s checks and balances, amplifying a deteriorating trend already captured in governance indicators”, the agency stated.

Moody’s also wrote that “despite the government’s commitment to reduce the deficit in adherence with EU rules, we expect the general government’s debt burden to rise further over the next few years to levels above those of similarly-rated sovereigns”.

The agency expects Slovakia’s GDP growth to be 2.1% next year, 1.5% in 2026 and 1.9% in 2027, driven in large part by EU funds.

The lowering of Moody’s ratings was seen by the opposition as a confirmation that Fico’s government interventions in judiciary, criminal law and media weaken the system of checks and balances in Slovakia.

Ľudovít Ódor, a member of the European Parliament from the largest opposition party, liberal Progressive Slovakia, and former central banker, stated that “lowered trust in the ability of Slovakia to pay off the debt means that when we want to borrow, we will pay higher interests rates. This money will be missed in healthcare, education or transportation.”  

The country plans a “gross bond issuance of around €12bn” in 2025, Reuters noted.