November 10, 2023

Moody’s confirms the Baa2 credit rating with a positive outlook

Moody's potvrđuje kreditni rejting

In the latest report from 10 November 2023, one of the world’s leading rating agencies Moody’s confirms Croatia’s credit rating of Baa2 and changes the outlook from stable to positive. This is the highest level of rating and rating outlook for Croatia by Moody’s so far. The factors that most contributed to Moody’s good rating are the reduction of the share of public debt in GDP, as well as exceptionally fast GDP growth in 2021 and 2022 and good expectations in 2023, in which growth is estimated at 2.8 % (according to the Government’s forecasts).

In the past period, all three leading rating agencies increased the outlook for Croatia’s credit rating from stable to positive. Moody’s confirms the economic and financial stability of Croatia, as well as the efficiency of institutions and management, especially with regard to the fulfillment of the criteria for entry into the euro area and the implementation of the National Recovery and Resilience Plan.

Moody’s highlights further potential for accelerating economic growth through the implementation of reforms and investments within the framework of the National Recovery and Resilience Plan. They also emphasize the timely fulfillment of a number of reform indicators, for which 40% of the allocated funds from the Mechanism for Recovery and Resilience have been paid, making Croatia one of the leaders in the EU in terms of withdrawing funds. They state the importance of National Recovery and Resilience Plan for the realization of investments in the areas of green and digital transition, energy, education and the labor market.