Croatia views Moody's outlook upgrade as results of reform

The Croatian government viewed Moody's upgrade of the country's outlook as the results of structural reforms, Finance Minister Zdravko Maric said on Saturday.

Moody on Friday revised Croatia's outlook from negative to stable and this was Moody's first upgrade of the country's credit rating since 2007.

Maric said Moody's latest report was the final step in realizing the government's goal which aimed at stabilizing the rating outlook.

By now three international rating agencies -- Standard & Poor's, Fitch and Moody's -- have upgraded their outlook on Croatia from negative to stable, but keep credit rating two notches below investment level.

The government expected to regain the investment rating in next two or three years, Maric said, adding it was necessary to continue the growth, reduction of the debts and deficit and structural reforms.

The key driver for revision of the outlook was stronger than expected medium-term economic growth which predicted 2.5 percent on average in coming years, Moody's said.

Moody's believes that the improved growth prospects will have a positive impact upon budgetary performance and contribute to a reduction in general government debt.

In addition, the political risks has reduced after new government was in power in October 2016, it added.

source: Xinhua