CROATIA'S CREDIT RATING FOR MARCH REMAINS BD4D

ZAGREB, March 7 (Hina) - Croatia's credit standing for March remains unchanged at DB4d, placing Croatia among countries with moderate investment risk, reads a report by the Dun & Bradstreet (D&B) credit rating company, cited by Zagreb's company for business information BonLine. #L# According to the newest D&B report, Croatia's risk profile for March, which is drawn up based on developments in previous months, is still marked by problems surrounding the General Bobetko case and the sale of the Suncani Hvar company, as well as their impact on relations between one of the coalition partners, Croatian Peasants Party (HSS), and the government. Although such relations in the ruling coalition make early elections more possible, they will probably not take place, says the report. D&B paid special attention to a new arrangement between Croatia and the International Monetary Fund. Although Croatia does not intend to draw the granted funds, the arrangement with the IMF increases the trust of foreign investors and stabilises Croatia's credit rating, the analysts assess. In the context of relations between Croatia and the Hague-based U.N. war crimes tribunal in the Bobetko case, the report cites decisions of Great Britain and the Netherlands to postpone the ratification of the Stabilisation and Association Agreement (SAA) between Croatia and the European Union until the Bobetko issue is solved. But, considering the fact that the findings of Croatian doctors on Bobetko's health and his inability to stand trial were verified by U.N. experts, the D&B analysts believe that the ratification of the SAA should be completed in the first quarter of next year. Possible new indictments could, however, disrupt such expectations, the report says. The Croatian economy was also affected by a problem which arose between five union federations and the government concerning amendments to the Labour Act, says D&B, without giving more specific expectations in this area. The DB4d risk index, which has been given Croatia for the past several months, indicates that there is still a significant risk regarding return on investments. Heading D&B's list of countries of central and eastern Europe are Hungary and Slovenia with the highest grade -- DB2d -- and the lowest invetsment risk. The list finishes off with Yugoslavia, with the lowest rating of DB6d, which has also been given to Uzbekistan, Turkmenistan, Tajikistan, Georgia, Belarus, Bosnia-Herzegovina and Albania. This rating indicates countries with very high investment risk. (hina) lml sb