Croatia Cut to Junk by Moody’s on Fiscal, External Risks
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Croatia’s credit rating was cut to junk by Moody’s Investors Service, which cited a stalled recovery, lack of budget discipline and vulnerability to external shocks by the European Union’s next member.
The Balkan country’s government bond rating was lowered to Ba1 from Baa3, the same level as Hungary and Ireland, Moody’s said in a statement released in London today. Standard & Poor’s cut Croatia to junk in December. Moody’s also changed Croatia’s outlook to stable from negative, saying the risk the government’s fiscal position and debt will “materially deteriorate any further” is limited.