Moody's cuts Slovenia's credit rating one notch to A1

Moody's Investors Service on Thursday cut the sovereign foreign currency credit rating for Slovenia one notch to A1 from Aa3, citing the increasing pressure on the government's balance sheet from the potential need to further support the nation's banking system.

The outlook for the credit rating is negative, Moody's said in a statement. Slovenia is rated one notch higher, at AA-minus, by both Standard & Poor's and Fitch Ratings.

The firm also said the downward pressure on the rating stems from a deterioration in government funding conditions due to the ongoing euro zone credit crisis.

(Reporting By Daniel Bases and Caryn Trokie; Editing by Chizu Nomiyama)

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