The global rating agency Fitch Ratings has confirmed Croatia's sovereign long-term foreign currency Issuer Default Rating (IDR) at 'BBB-', with negative outlook, financial web portals reported on Wednesday.
Fitch points out as positive factors Croatia's relatively rich anddiversified economy.
Amounting to USD 14,000 according to market exchange rates, Croatia's BDPper capita is 80 per cent higher in comparison to the mean values of othercountries grouped under the same 'BBB' rating.
However, Croatia's weak points are its high foreign debt and exposure toforeign currency risks.
In conditions of global trade downturn and weaker international capitalflows, the Croatian government's huge needs pose a risk for its credit rating,which is reflected in negative outlooks, the Fitch agency's director for neweastern European markets, David Heslam, was quoted by the portals as saying.
According to the agency, Croatia's BDP went down by 5.5 percent in 2009, andFitch projects a contraction of 0.5 per cent in 2010.
Selling government bonds in international markets in 2009, the Croatiangovernment collected EUR 2.5 billion to cover its fiscal needs and supportforeign currency reserves.
Fitch analysts believe that this year Croatia may decide to collect anadditional two billion euros in this way.
