Fitch confirmed credit rating for Serbia is B plus

(Photo: T33kid/shutterstock.com)

Credit rating scale of Fitch ranges from AAA to the lowest D and B rating which Serbia has is below investment level.

As communicated at the NBS website, rating maintenance, according to the estimation of the Fitch agency, was contributed first of all proper maintenance of fiscal consolidation measures and structural reforms agreed with the International Monetary Fund (IMF) which is confirmed also as of the beginning of the year.

Apart from that, according to the estimation of the rating agency, fiscal deficit will in the next years also have declining trend and as a result of that, fall of public debt is expected as of 2017.

It was estimated that Serbia is still sensitive to external shocks but it was also outlined that current account deficit is almost completely covered with foreign direct investments.

When it comes to economic activity, Fitch Ratings expects that fiscal policy measures will have short-term negative effects on domestic demand while positive contribution is expected from external demand.

It was also stated that the main risk is re-start of production in the steel plant.

Fitch Ratings thinks Serbian banking sector is liquid and adequately capitalized.