Fitch raised Croatia’s rating to A-

22.09.2024. / 10:06

ZAGREB – On Friday, the Fitch agency raised Croatia’s rating from ‘BBB+’ to ‘A-‘, with a stable outlook, highlighting the economy’s resilience to external shocks, the reduction of public debt and continued integration into the group of countries in the core of the Eurozone.

The ‘A’ rating signals to buyers of debt securities that Fitch expects a low risk that the debts will not be serviced and that the capacity to repay them is strong, although they may still be more vulnerable to adverse business and economic conditions than countries with higher ratings, reports SEEbiz. .

With a stable outlook, Fitch has indicated that it will maintain the rating at ‘A-‘ for the foreseeable future.

Croatia’s rating reflects a “credible” legal framework based on membership in the European Union and the Eurozone, along with fiscal discipline and a willingness to comply with fiscal regulations that will support the reduction of public debt over the next four years, the agency explains.

In recent years, institutional capacities and the management system have been improved, so the gap with similar countries has been reduced.

GDP per capita will be lower than similar countries with an ‘A’ rating, with a small economy, which means vulnerability to external shocks, warns Fitch.

Last Friday, Standard & Poor’s also raised the rating of Croatian debt securities, from ‘BBB+’ to ‘A-‘, but with a positive outlook, signaling that it may raise it again next year. Seebiz