NBS: Serbia's “BB-” credit rating reaffirmed

BELGRADE - Standard & Poor's Ratings Services reaffirmed Serbia's long-term local and foreign currency credit rating at “BB-” level with a negative outlook, the National Bank of Serbia (NBS) stated on Friday.

Moreover, Serbia's “B” short-term credit rating was also reaffirmed, the statement reads.

The S&P statement reads that the results of the March 16 parliamentary elections have created a more favorable political environment for the start of the long-postponed fiscal consolidation and structural reforms, reads the statement published on the NBS website.

Despite the negative outlook, the rating could be stabilized at the current level if the reforms that the government is soon to adopt consolidate the public finance in the long run, which would lead to a more favorable outlook of the economic growth and the country's sustainable external position in the medium term.

The rating was affected by the risks stemming from fiscal and external deficits, moderate GDP per capita and limited flexibility of the monetary policy due to high eurisation of the economy, the statement said.

Photo Tanjug/M. Jelesijevic (ilustration)