International Rating Agency announced that the Credit Rating of BiH

September 9, 2019 4:00 PM

The international rating agency Standard and Poor’s (S&P) announced that the credit rating of Bosnia and Herzegovina remains „B“with positive outlook.

The positive outlook reflects the expectations of analysts that economic perspective of BH would improve if the government is formed by the end of the year, as well as the expectation that a new government would regulate the status of the program with the International Monetary Fund (IMF) which would accelerate reforms and make possible the access to funding for important infrastructure projects.

According to the analysts, the credit rating could be upgraded in next 12 months if a lasting government is formed that promotes the resumption of structural reforms. In that case, the analysts would expect a reopening of a dialogue with the IMF, a firmer grasp over the financial positions of BH large public nonfinancial companies, as well as increasing steps to bringing the sizable gray economy into the taxable area.

On the other hand, the report states that the rating would be downgraded if a government is not formed and reforms are not revived.

The rating has been B with positive outlook since 8 March 2019, when this agency upgraded the outlook for long-term rating of BH from stable to positive, which was the first upgrade of the outlook for long-term rating of BH by S&P since 2012.

 

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