FITCH: No change in Serbia's rating

Ratings company Fitch announced Monday (21 May 2012) that the elections in Serbia had increased uncertainty about the direction of economic policy and relations with the International Monetary Fund (IMF), but that it would not affect Serbia's credit rating.

The situation in Serbia is "within the tolerance levels of our 'BB-' rating with a Stable Outlook," said Fitch on its website.

- When we affirmed the rating in November, we said that we expected the presidential election to result in a continuation of a pro-market and pro-European policy orientation. This remains the case in light of the pro-EU stance taken by Tomislav Nikolic, leader of the Serbian Progressive Party and victor in Sunday's presidential election - reads the statement.

Fitch says that Nikolic may have to deal with a rival parliamentary majority, which could make the implementation of reforms difficult.

The credit agency says that Nikolic has had occasional anti-IMF rhetoric, but that his victory does not increase uncertainty about Serbia's relations with that financial institution since the previous ruling coalition had not automatically followed IMF recommendations.

In the longer term, Nikolic's strong stance on Kosovo could delay the start of EU accession talks but, Fitch adds, there is also uncertainty here because in his first speech Nikolic said "Serbia will not give up its European path."