Regional Economics & Market Strategy Focus Note – Fitch and S&P upgrade Serbia’s sovereign credit ratings on improving fiscal metrics (Tuesday, December 19, 2017)
In line with our expectations, S&P upgraded on December 15th its long-term foreign and local currency sovereign credit ratings on Serbia at “BB” from “BB-”, with stable outlook and affirmed the “B” short-term foreign and local currency sovereign credit ratings. We had recently argued that such a development was to be expected as S&P had noted earlier in the year that there was an increased upgrade likelihood over the next 6-12 months if fiscal developments exceed the agency’s expectations, while there has been an ongoing improvement in government finances so far this year. Behind its decision, the agency noted “stronger fiscal metrics, underpinned by years of cost-containing efforts and revenue overperformance, amid steady economic recovery and contained current account deficits”, while the stable outlook indicates “balanced risks to the ratings over the next 12 months.”
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