BRIEF-S&P Says Slovakia Outlook Revised To Negative From Stable

BY Reuters | CORPORATE | 05/20/22 05:21 PM EDT

May 20 (Reuters) -

* S&P SAYS SLOVAKIA OUTLOOK REVISED TO NEGATIVE FROM STABLE ON RISING ECONOMIC AND FISCAL RISKS; 'A+/A-1' RATINGS AFFIRMED

* S&P SAYS RUSSIA-UKRAINE CONFLICT WILL HAMPER SLOVAKIA'S ECONOMIC RECOVERY, PUSH UP INFLATION, AND TRIGGER PUBLIC SPENDING PRESSURE

* S&P SAYS SLOVAKIA'S HIGH EXPOSURE TO RUSSIAN HYDROCARBONS FURTHER THREATENS GROWTH OWING TO POTENTIAL EU EMBARGO, MOVE TO ENERGY FROM OTHER SOURCES

* S&P ON SLOVAKIA SAYS NEGATIVE OUTLOOK REFLECTS THE RISKS OF THE RUSSIA-UKRAINE CONFLICT TO SLOVAKIA'S ECONOMIC GROWTH AND FISCAL POSITIONS

* S&P - SLOVAKIA'S CONCENTRATED, AUTOMOTIVE-HEAVY, EXPORT-ORIENTED INDUSTRY STRUCTURE MAKE ECONOMIC ACTIVITY MORE VULNERABLE TO SUPPLY CHAIN DISRUPTIONS

* S&P ON SLOVAKIA SAYS SEE RISKS OF LOWER GROWTH AND WEAKER PUBLIC FINANCES THAN S&P CURRENTLY PROJECT

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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