11:53 / 14.07.2022.

Author: Branko Lozančić

Fitch raises Croatia's rating due to its entry into the eurozone

Fitch raises Croatia’s rating

Fitch raises Croatia’s rating

Foto: - / Shutterstock

Yesterday, in the latest extraordinary assessment, the Fitch agency raised the investment credit rating of Croatia by one level, to 'BBB+', with a stable outlook, after the completion of the procedure for the admission of the Republic of Croatia to the Eurozone.

Namely, the regular review of the rating by Fitch is scheduled for November 28, but due to the importance of the confirmation of Croatia's entry into the euro area, they assessed that it was a situation with significant material changes and then decided to raise the rating extraordinarily.

The new increase in the credit rating by Fitch is a direct consequence of the final decisions by the Council for Economic and Financial Affairs from July 12 on Croatia's admission to the eurozone at the beginning of next year.

Fitch believes that "the adoption of the euro is positive for the rating because it will provide Croatia with reserve value status, reduce transaction costs and limit value risk for financial companies and households."

In addition, this rating agency emphasizes that Croatia fulfilled all convergence criteria (Maastricht criteria) and reforms from ERM II in the shortest possible time.

Currently, according to Fitch, seven EU members have a lower rating than Croatia, these are Italy, Portugal, Greece, Cyprus, Hungary, Bulgaria, and Romania.

Plenković: The new rating increase is a direct result of membership in the eurozone

Prime Minister Andrej Plenković announced on Twitter today that the new increase in the credit rating was the direct result of membership in the eurozone, which brings Croatia greater security during the crisis.

“In the latest rating of the Fitch agency, the investment rating of Croatia was raised by another step, to BBB+, with stable prospects for growth! The new increase in the credit rating is a direct result of membership in the eurozone, which provides Croatia with greater security during the crisis,” stated Prime Minister Plenković's message on Twitter.

Source: HRT

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