Fitch Ratings Retains BB+ Credit Rating for Serbia

Jorgovanka Tabakovic (BETAPHOTO)

Fitch Ratings has retained Serbia's BB+ rating, which is one level shy of investment level, the National Bank of Serbia (NBS) reported on Aug. 20.

The central bank explained that, after a regular, six-month review of Serbia’s credit rating, the agency affirmed the country's BB+ rating, with a stable outlook for increasing. National Bank of Serbia governor Jorgovanka Tabakovic said that the agency’s decision was yet another confirmation that Serbia was prepared for the challenges that the world had been exposed to for more than two years.

“Adequate and timely measures, and a firm view that stability is key to protecting the confidence of investors and consumers, have made it possible for Serbia to alleviate the effects of several global crises developing simultaneously,” Tabakovic said in a press release.

Fitch expects this year’s increase in the current account deficit to be a function of high energy prices. Net foreign direct investment was resilient in the first half of 2022 at five percent of GDP, while high revenues are expected in 2023, too. The agency said that, driven by higher global commodity prices, Serbia’s rate of inflation would be lower in 2023 at seven percent, followed by 3.8 percent in 2024, which largely coincides with the central bank’s target range.