Moody's downgrades Slovenia to 'junk' bond rating

Moody's downgrades Slovenia to 'junk' bond rating

 Moody's Investors Service cut Slovenia's government bond rating by two notches to Ba1, its highest "junk" bond rating, from Baa2 on Tuesday and said the outlook for the rating remains negative. The ratings firm cited three factors: the health of the country's banking sector, the marked deterioration of the government's finances, and uncertain funding prospects that heighten the probability that external assistance will be needed. The government had been seeking to raise cash through a bond sale, but called it off earlier Tuesday ahead of the ratings announcement.