Home Page
 
News 11 Feb 13

Moody's Lowers Croatia Rating to Ba1

Moody's on Friday downgraded Croatia's credit rating from Baa3 to Ba1, citing poor economic growth prospects and the government's lack of fiscal flexibility.

Daily T Portal
Zagreb

The agency also changed the outlook on Croatia's rating from negative to stable, citing only a limited risk of a significant deterioration in the government's fiscal position and debt.

Moody's said that "the government's capacity to re-balance the economy toward exports is intrinsically limited" and "that the country's expected forthcoming EU accession in July 2013 is a positive development; however, the European economic environment and the government's reform inertia are likely to limit the benefits normally expected to arise from EU accession.

"The second driver underpinning the downgrade are the headwinds to fiscal consolidation, namely the unfavourable economic environment and the government's lack of fiscal flexibility alongside a relatively high debt level," the statement said.

"The third driver informing Moody's decision to downgrade the rating is the weakness of its credit metrics relative to those of its peers, particularly its external vulnerability and fiscal position," the agency said, adding that the "government's fiscal metrics are also weaker, with general government debt exceeding those of Baa3-rated countries."

Talk about it!

blog comments powered by Disqus

Related Headlines:

macedonia-appeals-court-to-decide-on-gruevski-s-detention-07-21-2017
21 Jul 17

Macedonia Court To Rule on Gruevski’s Detention

Macedonia’s Appeal Court is to decide within the next two days whether to detain former Prime Minister Nikola Gruevski and top officials of his VMRO DPMNE party on election fraud charges.

21 Jul 17

Kosovars Warned About Using First Bitcoin ATM

Premium Selection

serbia-in-two-minds-over-new-imf-deal-07-17-2017
20 Jul 17

Serbia in Two Minds Over New IMF Deal

With the economy in relatively good shape, a question mark hangs over whether Serbia needs a fresh arrangement with the Fund.

kosovo-war-court-president-promises-impartial-justice-07-19-2017
20 Jul 17

Kosovo War Court President Promises Impartial Justice

The president of the Kosovo Specialist Chambers, Ekaterina Trendafilova, told BIRN the new court has no ethnic bias, will protect its witnesses from intimidation and deliver justice impartially and independently.

19 Jul 17

New Migrants Face Old Terrors on Balkan Route