Recent issues show financial markets are relatively poor in predicting political developments

On Dec 14, 2018, S&P Global Ratings affirmed its 'A+/A-1' long- and short-term foreign and local currency sovereign credit ratings on Slovenia. The outlook remains positive. As the S&P Global claims: "The country's current account is in a substantial surplus, while net government debt is set to fall below 50% of GDP by 2020." What are your thoughts?

Country risk assessment provided by the rating agencies is an important indication of how a particular country is perceived in the global economy. It should, however, be clearly said that changes in the rating typically come with a time lag and are behind the actual economic and political situation in a country. Just to recall Slovenia's case. Though in the context of the recent crisis our economic performance started to deteriorate sharply and quickly already in 2009, Slovenia only experienced its first...