BiH's credit rating B3 with stable outlook

The international agency for assessing state (sovereign) credit rating, Moody's Investors Service, confirmed BiH's credit rating which reads "B3 with stable outlook".

In favor of the confirmed credit rating, Moody's analysts highlight Bosnia and Herzegovina's stable economic growth, although structural challenges, including high unemployment, negatively affect BiH's economic strength. Analysts state that BiH is moderately indebted and with relatively low interest expenses, which contributes to its fiscal strength.

Analysts comment that the current political instability does not contribute to efficiency in decision-making and implementation, and this particularly affects the implementation of the agreed reform program.

The "stable outlook" rating is based on the expectation that BiH will continue to meet the conditions, primarily of the International Monetary Fund (IMF), for favorable external financing that will enable the necessary financial and technical assistance for the gradual implementation of the reform agenda. Also, Moody's expects the authorities to continue progress regarding EU integration, especially in light of the recently published European Commission's strategy for the Western Balkans.