Fitch affirms Croatia's credit rating at 'BBB-', outlook stable
Fitch (Author: fitchratings.com) License: all rights reserved.
ZAGREB (Croatia), May 25 (SeeNews) - Fitch Ratings said it affirmed Croatia's long-term foreign-currency Issuer Default Rating (IDR) at 'BBB-' with a stable outlook.
Fitch sees Croatia's economy growing by 5.5% in 2021, subject to the expected recovery of the tourism sector by at around two-thirds of its pre-pandemic level, it said in a statement last week.
The global ratings agency also said:
"KEY RATING DRIVERS
Croatia's ratings balance strong structural features, including higher human development, governance indicators and GDP per capita than peers, with high public sector debt and a record of low GDP growth, partly due to the slow adoption of structural reforms. The Stable Outlook weighs large short-term downside risks related to pandemic developments against stronger medium-term growth prospects linked to substantial EU fund support and our fiscal consolidation and debt reduction baseline that is underpinned by the authorities' commitment to fulfilling convergence criteria under the Exchange Rate Mechanism (ERMII).