Rating action

Scope Ratings GmbH has today upgraded the short-term issuer rating to S-1 from S-2 in both local and foreign currency. The Outlook for all ratings is Stable.

For the detailed rating report, click here.

Key rating drivers

Scope identified an input error with respect to Slovenia's short-term rating, which resulted in it being incorrectly assigned an ‘S-2’ short-term rating in the rating action taken on 17 August 2018. This occurred as part of the rating affirmation taken on Slovenia's long-term local and foreign currency credit rating at A- with a stable outlook along with the short-term ratings of ‘S-2’ in both local and foreign currency.

Under Scope’s Sovereign Rating methodology, short-term ratings are determined from the long-term rating of the same currency according to Scope’s short-term rating scale. At several long-term ratings, the short-term rating scale provides two possible options for the short-term ratings, stating that the higher of the two options is to be used. The higher of these two options ‘S-1’ should have been applied, however, the lower ‘S-2’ rating was incorrectly applied. To rectify this error, Scope has today upgraded the short-term local and foreign currency ratings to ‘S-1’ from ‘S-2’.

Outlook changes and drivers

Slovenia’s short-term foreign and local currency ratings are sensitive to any changes in the long-term local and foreign currency ratings as specified in the short-term rating scale.

Methodology
The methodology used for this rating and rating outlook the Scope Sovereign Methodology May 2018, available on www.scoperatings.com.
Historical default rates of Scope Ratings can be viewed in the rating performance report on https://www.scoperatings.com/#governance-and-policies/regulatory-ESMA Please also refer to the central platform (CEREP) of the European Securities and Markets Authority (ESMA): http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml. A comprehensive clarification of Scope’s definition of default as well as definitions of rating notations can be found in Scope’s public credit rating methodologies on www.scoperatings.com.
The rating outlook indicates the most likely direction of the rating if the rating were to change within the next 12 to 18 months. No cash flow analysis was performed. No stress testing was performed.

Solicitation, key sources and quality of information 
The rating was not requested by the rated entity or its agents. The rated entity and/or its agents did not participate in the rating process. Scope had no access to accounts, management and/or other relevant internal documents for the rated entity or related third party.
The following substantially material sources of information were used to prepare the credit rating: Banka Slovenije, Republic of Slovenia Statistical Office, BIS, IMF, OECD, ECB, European Commission, Eurostat, Haver Analytics. 
Scope considers the quality of information available to Scope on the rated entity or instrument to be satisfactory. The information and data supporting Scope’s ratings originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data.
Prior to the issuance of the rating or outlook action, the rated entity was given the opportunity to review the rating and/or outlook and the principal grounds on which the credit rating and/or outlook is based. Following that review, the rating was not amended before being issued.

Regulatory disclosures 
This credit rating and/or rating outlook is issued by Scope Ratings GmbH.
Lead analyst John F. Opie, Associate Director
Person responsible for approval of the rating: Giacomo Barisone, Managing Director Public Finance
The ratings/outlooks were first released by Scope on January 2003. The ratings/outlooks were last updated on 17.08.2018. 
As a "sovereign rating" (as defined in EU CRA Regulation 1060/2009 "EU CRA Regulation"), the ratings of the Republic of Slovenia are subject to certain publication restrictions set out in Art 8a of the EU CRA Regulation, including publication in accordance with a pre-established calendar (see "Sovereign Ratings Calendar of 2018" published on 22.12.2017 on www.scoperatings.com). Under the EU CRA Regulation, deviations from the announced calendar are allowed only in limited circumstances and must be accompanied by a detailed explanation of the reasons for the deviation. In this case, the deviation was due to the correction of an input error prompting the publication of the credit rating action on a date that deviates from the previously scheduled release dates per Scope’s public finance release calendar, published at www.scoperatings.com.

Potential conflicts
Please see www.scoperatings.com. for a list of potential conflicts of interest related to the issuance of credit ratings.

Conditions of use / exclusion of liability
© 2018 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Analysis GmbH, Scope Investor Services GmbH and Scope Risk Solutions GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstrasse 5 D-10785 Berlin.

Scope Ratings GmbH, Lennéstrasse 5, 10785 Berlin, District Court for Berlin (Charlottenburg) HRB 192993 B, Managing Director: Torsten Hinrichs.