BiH Credit Rating Confirmed

SARAJEVO, (Patria) - International rating agency Standard and Poor (S&P) announced that the credit rating of Bosnia and Herzegovina remains „B“ with positive outlook.

The positive outlook is based on the expectation of the agency's analysts that BiH's economic outlook will improve if a government is formed by the end of the year, and on the expectation
that the new government will regulate the status of the program with the International Monetary Fund (IMF), which would accelerate reforms and enable access to funding sources for important infrastructure projects.

According to analysts, the credit rating can be increased in the next 12 months if a stable government is formed that will promote the continuation of structural reforms. In that case, the agency's analysts expect the resumption of dialogue with the IMF, a realistic assessment of the financial situation of large public non-financial companies in BiH, as well as steps towards reducing the grey economy. 

On the other hand, the report states that the rating will be lowered if a stable government is not formed and reforms are not revitalized. The current rating has been in effect since March 8, 2019, when the agency improved the outlook from stable to positive, which was the first improvement in the outlook for BiH's long-term rating since 2012.