INVESTMENT RISK RATING IMPROVES, CROATIA LEAVING STATE OF RECESSION

ZAGREB, Nov 8 (Hina) - Croatia's economy is leaving the state of recession, which has directly affected the country's investment risk profile. Croatia's rating for November remains DB5a, however, with a trend of improvement toward the next category of lesser investment risk (DB4) as development forecasts for macroeconomic indicators are rather optimistic, reads a report by one of the leading international agencies for credit rating assessment, Dun & Bradstreet (D&B). #L# According to the report, which was published by D&B's representative in Zagreb, BonLine company, the economic environment in Croatia in November has continued to strengthen, especially as regards the latest statistical data which confirm that the country's economy has started leaving the state of recession. The country's Gross Domestic Product has recorded positive developments for the third quarter in a row, rising by 3.7 percent in the second quarter this year as against the same period last year. Exports have increased as well, by 2.9 percent in the first eight months of this year, whereas imports have increased by 0.4 percent in comparison to the same period last year. Those developments were affected by a decision made by the European Union to cancel customs and quantity limitations for some Croatian products, as well as by the announcement of the signing of a free- trade agreement with Bosnia-Herzegovina and the very good tourist season. DB5a is the best rating mark in DB5 category, which includes high investment risk countries. Croatia's expected ascent into the upper, DB4 category, would mean that the country has been admitted in the category of moderate investment risk countries, including Estonia, Lithuania and Slovakia. Hungary has the best investment risk rating - DB3a (low risk), whereas Albania and Yugoslavia have the poorest rating - DB7 (highest investment risk). (hina) rml