Croatia's Outlook Upgraded by Moody's
Image by Andrius Zemaitis / Shutterstock.com
Moody's has improved the outlook on Croatia to positive from stable, affirming its long-term issuer and senior unsecured ratings at "Baa2".
"Moody's decision to change the outlook to positive is driven by an increasing likelihood that Croatia's debt burden will fall more significantly than previously expected leading to further improvements in fiscal strength," it said on Friday evening.
The upgrade is also supported by the potential for Croatia's growth and improved institutional effectiveness. This is due to the successful implementation of significant investments and reforms outlined in the EU-sponsored Croatia's Recovery and Resilience Plan (RRP).
The affirmation of the Baa2 ratings reflects Croatia's fiscal strength, as well as institutions and governance strength that are significantly stronger than that of rating peers, Moody's said. The ratings agency expects that Croatia's debt burden will stand at 61.1% of GDP by the end of 2023, and will continue to decline to 58.3% in 2024 and 56.3% in 2025.
The projected decline of the debt-to-GDP ratio remains significantly faster and deeper than Moody's previous expectations.
Government Acknowledges Drop in Motor Fuel Prices
EU Affairs Ministry, AmCham Sign Strategic Partnership Deal
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
