Croatia: Fitch maintains the rating to “BB” but lowers outlook to … – Boursorama

The Fitch ratings agency downgraded to “negative” the outlook for Croatia, while maintaining the rating of its debt to “BB”, saying that “political risk” could delay structural reforms.

the negative outlook means that the agency might decide to lower the rating of the Croatian public debt, already rated speculative grade, over the coming months.

the short growth perspective and long term and the level of external debt remains “weakness” for the evolution of the rating, Fitch points out in a statement on Friday.

Croatia recorded in 2015 a growth of its product gross domestic Product (GDP), which had not happened since 2008. But the annual growth rate of 1.6% was “quite low,” said the US agency.

in contrast, among the points likely to raise the outlook to stable, Fitch notes the progress made in fiscal consolidation.

the Croatian president called for early parliamentary elections on September 11 after the fall of the government of right June

the vote will take less than a year after the election in November 2015, without a clear majority Parliament which led to the establishment of a fragile coalition government.

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