SYDNEY: Standard & Poor's lowered Croatia's long-term foreign and local currency sovereign ratings to 'BB' from 'BB+', saying the country is likely to remain in recession for a sixth straight year.
"The downgrade reflects our view that the economic and budgetary policy measures that the Croatian government has introduced so far have been insufficient to foster economic growth and place public finances on a more sustainable path," the ratings agency said in a report.
"We believe that economic competitiveness remains weak due to factors such as labor market rigidities and a complicated business environment."
S&P affirmed the country's short-term ratings at 'B'. The outlook is stable, it said.
Comments
Comments are closed.