The countrys mounting debt problems have been flagged by country experts over recent years, with its score falling by 16.6 points since 2010 in tandem with Cyprus the Cypriot crisis has merely brought these solvency issues into focus.
Slovenia is considered somewhat less risky than Cyprus, overall, yet its bank stability has been downgraded further since December by 0.3 points to a new low of 4.7 out of 10.
Yet the gloom is not region-wide. All of CEEs A-rated sovereigns residing in the second of ECRs five-tiered groups have avoided score declines this quarter. The Czech Republic, Estonia, Slovakia and Poland might be vulnerable to the weakened export climate, but with more favourable fiscal dynamics and political environments, including stronger institutions and policymaking attributes, they are remarkably fine-tuned to withstand the worst of Europes debt crisis.
Indeed, with increased scores for the Czech Republic and Slovakia since December, there are now three countries in the region Estonia is the other with scores marginally exceeding 70 points out of 100. Forty or more points separate that triumvirate from high-risk, tier-five Montenegro and Bosnia-Herzegovina.
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