Croatia’s Credit Rating Cut Again

Croatia’s credit grade rating has been cut another notch again by rating agency Fitch…

Fitch has cut Croatia’s credit rating from ‘BB+’ down to ‘BB’ after the government announced that it would not meet its budget deficit this year.

‘Fitch believes there are increasing risks regarding Croatia’s ability to stabilise its high public debt to GDP ratio over the medium term,’ the agency reported, adding that it expected the EU’s newest member to only make the target deficit set by the EU of 3.8% of GDP by next year.

‘Preservation of sovereign creditworthiness depends on the government’s willingness and ability to deliver 3 per cent to 5 per cent of GDP of fiscal adjustment that would put public debt on a sustainable downward path and restore budget balance.’