HBOR BANK GIVEN SAME CREDIT RATING AS CROATIA

ZAGREB, June 16 (Hina) - The Croatian Bank for Reconstruction and Development (HBOR) was given the BBB and Baa3 longterm investment credit rating by Standard & Poor's and Moody's, two of the world's leading rating agencies. The HBOR rating is identical to the one Croatia has, HBOR told reporters on Friday. According to assessments from Standard & Poor's and Moody's, the current rating carries a negative trend which is related to the rating evaluation the two agencies gave Croatia last year, HBOR chairman of the board Anton Kovacev explained. According to official interpretations, a rating's negative trend means that Standard's & Poor's and Moody's over the next three years expect a possible fall in Croatia's and HBOR's credit rating. Kovacev believes such forecasts will not come true especially in view of the steps Croatia's new government has taken so far and announced for the future. HBOR announced plans to issue new euro bonds in the amount of EUR100 million, with a minimum five-year maturity, perhaps in early July, or most probably in September. The mandate to carry out the bond issue has been allocated the CHASE Manhattan bank from the United States. HBOR is currently completing work on documentation for Euro Medium Term Note, a programme for debt accumulation on the international capital market which has been organised by Deutsche Bank from London. The programme represents the basis for individual issues of debt securities in all currencies over the next several years. Its total value is EUR500 million. (hina) ha mm