BRATISLAVA, March 28, (WEBNOVINY) – Moody’s Investors Service lowered its outlook on Slovakia’s banking system to negative from stable. The reason behind it is risk of a weaker economic growth and asset quality in the sector, the agency stated in its latest report on the country’s banking system outlook released on Tuesday evening. Moody’s estimates that the European Union’s economic downturn will pressure asset quality and profits in the sector. These factors are mitigated by expectations that the sector will maintain good liquidity and adequate capitalization. Moody’s expects Slovakia’s gross domestic product growth to decelerate to about 1.7 percent in 2012, from 3.1 percent in 2011 and 4 percent in 2010. Despite growing profits over the last two years, Moody’s anticipates that weakened business environment will reduce profits, too.
SITA
