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Fitch Cuts Croatia´s Credit Rating Outlook

Published: November 30, 2012; 15:46 · (Vindobona)

The U.S. rating agency argues that the economic development in Croatia is substantially behind the expectations.

Fitch Cuts Croatia´s Credit Rating Outlook / Picture: © Fitch

Croatia´s rating was reiterated at “BBB-“. However, the outlook was lowered from “stable” to “negative”. The last assessment took place in September. Fitch explains that the economic forecasts of the government were too optimistic. Fitch expects economic growth rates of 0.3% in 2013 and 1.3% in 2014. The Croatian government anticipates growth rates of 1.8% (2013) and 3.5% (2014).

Besides that, Fitch refers to the increased budget deficit. Next year, the Croatian government plans a deficit of 3.8% of GDP. Initially, the planned budget deficit came at 3.5%. According to Croatia´s Finance Minister Slavko Linic, the re-assessment has no impact on Croatia´s financing costs.

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