D&B: CROATIA'S RATING FOR JUNE REMAINS UNCHANGED

ZAGREB, June 10 (Hina) - Croatia's risk outlook for June continues to be buoyed by data indicating that GDP growth for the early part of 2003 continued to be supported by strong domestic demand. Croatia's credit rating remains DB4d, says a latest report by the Dun & Bradstreet (D&B) international credit rating company, as reported by Zagreb's BonLine company Tuesday. #L# Although drought in agriculture has blighted the risk factor looking at the supply side, it is interesting that D&B analysts have estimated that "this natural disaster (should not) affect the country's overall risk rating." The analysts note that, on the political front, there have been indicators that the drought has increased tensions within the ruling coalition. It was expected that certain members of the coalition would be tempted to use the disaster as a means of securing support ahead of the November general election. However, they believe that such stands should not "cause the collapse of the government or to prompt the calling of early elections." Croatia has been given DB4d rating for months, meaning that the country is of moderate risk, but still significant risk for return of investments. Among 25 countries in transition whose credit rating is appraised by this company, Croatia stands at tenth place. The list has been led for months by Hungary and Slovenia with the mark DB2d, which makes them countries of low risk for investors. The end of the list, with a credit rating of DB6d, has for months been held by Serbia and Montenegro, Bosnia, Uzbekistan, Turkmenistan, Tajikistan, Georgia, Belarus and Albania. The rating indicates countries with a very high risk for investors. (hina) lml