ZAGREBACKA BANKA GIVEN BB+ CREDIT RATING

( Editorial: --> 0516 ) LONDON/ZAGREB, June 11 (Hina) - Standard & Poor's, an international credit rating agency, has granted one of Croatia's largest banks - Zagrebacka banka - the highest speculative credit rating - BB+ for long-term indebtedness, Standard & Poors said in a statement in London on Thursday. The rating reflects the status and importance of Zagrebacka banka in the Croatian financial system, its stable financial profile and Standard & Poor's firm conviction that the Government would offer its unquestionable support if necessary, the statement said. The speculative credit rating BB+ is bordering on the investment credit rating BBB-, which Croatia was given at the beginning of 1997. In an interview with Hina, a member of the Zagrebacka banka administration Davor Holjevac said the given credit rating was exceptionally good and was proof of the bank's stability, which would help it in getting more favourable loans abroad. The assessment took into account the internal organisation of Zagrebacka banka, its risk management and the management information system, which were developed in cooperation with the Irish financial group Allied Irish Banks PLC. However, Standard & Poors also points out the problem of non-liquid investments obtained through the exchange of ownership claims, of which many are from hotel tourism. The agency also warns that the rapid increase of approved loans of Zagrebacka banka could in the future lead to problematic assets. (hina) rml/bag 111733 MET jun 98