International Rating Agencies Affirmed Sovereign Rating of Bosnia and Herzegovina

The international rating agency Moody's affirmed the credit rating of Bosnia and Herzegovina, being "B3" with a stable outlook.

The Central Bank is recognized as an institution that effectively implements the Currency Board Arrangement and enjoys a high level of credibility, and it is recognized as a positive factor of institutional strength and management.

The fiscal strength of the country is rated better, compared to the countries of the same sovereign rating. Mild budget surpluses from earlier periods, both the structure and level of public debt, have created fiscal space to respond to the pandemic, without a significant increase in fiscal vulnerabilities.

Analysts estimate that the sovereign rating is mostly limited by a complex political structure that slows down institutional progress and progress in the area of economic reforms. These negative factors have been partially neutralized by the moderate level of indebtedness and commitment of the international community to the economic stabilization of the country.

Also, the international rating agency Standard & Poor's affirmed the credit rating of Bosnia and Herzegovina, which is "B" with a stable outlook. The outlook is currently stable as the macroeconomic impact of the pandemic and the still sustainable level of government indebtedness have been assessed to create significant balance against the aforementioned risk factors.

The rating agency's assessment states that the Currency Board arrangement, implemented by the Central Bank of Bosnia and Herzegovina is an important anchor of economic policy in BH.

Communications Office

Central Bank of Bosnia and Herzegovina