D&B: CROATIA'S CREDIT RATING REMAINS UNCHANGED

ZAGREB, Jan 11 (Hina) - Although Croatia's credit rating for January remains DB5a, the country's admission to the World Trade Organisation, a continual growth of Gross National Product, an increase in foreign investments and the influx of money from privatisation, as well as significant improvements in the financial sector have significantly affected the further formation of the country's credit rating. #L# A possible break-up of the ruling coalition, pressures on the budget, inherited from previous transactions, and an increased risk of domestic bankruptcies due to the arrival of foreign companies still divide Croatia from the next, DB4 category of lower investment risk. These are the highlights of the January report on Croatia's credit rating by a leading international credit rating agency, Dun & Bradstreet (D&B), as quoted by the Zagreb company BonLine. D&B experts estimate that the agreement with the International Monetary Fund, although the current state of foreign currency reserves does not require it, will be signed in the first half of this year, which will directly affect the granting of a higher credit rating. DB5a is the best rating in the DB5 category, which includes countries with a high investment risk. A DB4 rating would introduce Croatia to a group of countries with a moderate investment risk, including Slovakia, Estonia and Lithuania. For some time now, Hungary has had the best credit rating, DB3a, which signifies a low investment risk country. Several months ago, Slovenia was granted the same rating as well. The Czech Republic and Poland have a slightly poorer mark, DB3b, whereas Albania and Yugoslavia have for some time held the DB7 rating, the highest investment risk category. (hina) rml