Credit Rating of Bosnia and Herzegovina Remains the Same, With Stable Outlook

The international rating agency Moody's Investors Service has announced on 10 July 2012 that the credit rating of Bosnia and Herzegovina remains B3. What has been changed compared to the previous rating assessment is the Outlook, as the Negative Outlook has been replaced with the Stable Outlook.

The confirmation of the credit rating with the Stable Outlook, according to the analysts, is a result of the measures which the authorities of Bosnia and Herzegovina take  for purpose of strengthening the process of foreign debt servicing and the removal of key obstacles which brought about  the short-term delay  in the foreign debt repayment in January and February this year.

The negotiations on the new IMF Stand-by Arrangement should revive the programmes of structural economic reforms and make possible the inflow of foreign investment in the country.

According to the analysts' opinion, a positive, but slow progress of BH  on its way to the EU has been achieved, as the Law on the State Aid System and the Law on the State Census have been adopted soon after the formation of the BH Government, and also constitutional changes in accordance with the decision  of the European Court on Human Rights should follow soon. The BH credit rating has been kept at this level due to the continuation of the uncertainty with respect to medium term outlook of economic growth.

Credit rating of BH, according to the analysts of this Agency, could be improved  if the country submits application for the membership in the EU, as this would mean that the additional reforms have been  done or are in process both in the economic and political area.

Public Relations Section