CROATIA'S CREDIT RATING REMAINS AT SAME LEVEL

ZAGREB, March 7 (Hina) - Croatia's credit rating in March remains unchanged -- DB4d, according to an international investment risk company. The Dun & Bradstreet (D&B) credit rating agency dedicated its entire report on Croatia to the current problems in the ruling coalition, and its predictions of possible outcomes. D&B analysts envisage three possible scenarios for solving the political crisis which occurred following Drazen Budisa's reelection as president of the Croatian Social Liberal Party (HSLS). There is a 30 percent chance of worsening relations between the HSLS and the Social Democratic Party, which could cause the HSLS to withdraw from the coalition, the analysts said. This could cause coalition partners to lose their majority status, forcing early elections. This would not be in HSLS's interest, said the D&B, because of the party's relatively low popularity, as indicated by recent polls. Further division within the HSLS into moderate and radical currents, as well as the party's disintegration is cited as the second scenario, which has a probability of five to ten percent, the report says. Neither current would have much chance in early elections, D&B wrote. The party's best strategy would to remain in the government, while attempting to increase its support base prior to the 2004 general election, said the agency. Among Central and Eastern European countries, Hungary and Slovenia have the highest credit rating -- DB2d. Yugoslavia lags behind with the DB6d factor, and Croatia is 9th, placing it among countries of moderate investment risk. (hina) lml sb