This leading provider of credit ratings currently puts the Croatian government bonds at the Baa3 rating.
The agency says that one of the credit strengths of Croatia is the fact that the country's European Union accession negotiations are nearing completion.
Credit challenges include "to improve competitiveness in order to boost growth and convergence with the advanced members of the EU" as well as "to maintain fiscal credibility in order to underpin exchange rate stability given the economy's high euroization".
"Croatia's ratings could come under downward pressure if any material weakness in the kuna is sustained, which would have potentially dire consequences for an economy that is heavily euroized," the agency said in its opinion on Croatia.
It projects Croatia's real economic growth rate at 1.1% in 2011 and 2 % in 2012.
It forecasts the country's inflation rate at 3.6% this year and its deceleration to 2.4% in 2012.
The share of the general government debt in GDP can reach 45.2% in 2011 and 48.4% in 2012.
For instance, the general government debt in GDP came to 40.1% in 2010.