A longer-standing trend of weakening standards of governance and weakening of the underlying inflation outlook drive the downgrade. Sound macroeconomic fundamentals, a moderate public debt level, and a well-capitalised banking system support the ratings.

The periodic review has resulted in no rating action.

The periodic review has resulted in no rating action.

A highly integrated institutional framework, track record of fiscal consolidation, prudent liquidity management and a solid economic base support the rating. High debt, limited revenue flexibility and sizeable contingent liabilities are challenges.

Weakening public finances and implementation risks to the reform agenda drive the Outlook change. A large, diversified, and resilient economy; core euro area member status; a favourable debt profile; and excellent capital market access are strengths.

Euro area membership since 2023, favourable public debt trajectory and sound structural reform momentum support the ratings. High public debt levels, modest growth potential and limited economic diversification remain rating challenges.

Weakened medium-term growth prospects and deteriorated fiscal metrics drive the downgrade. A robust fiscal policy framework and favourable debt profile are key credit strenghts.

This periodic review has resulted in no rating action.

Strong capital base, excellent asset quality, very high liquidity buffers, growing strategic importance, and highly rated shareholders support the rating. High leverage is the key credit challenge.

Monitoring review announcement