Croatia Debt Rating Cut to Junk by S&P

Croatia had its sovereign debt rating cut to junk by Standard & Poor’s, which said the country’s structural and fiscal overhaul is insufficient to promote growth and make government finances more sustainable.

Croatia’s long-term credit rating was lowered one step to BB+, the highest non-investment level, and its short-term grade also fell one level to B, S&P said today in a statement. The ratings carry a stable outlook, indicating that S&P is more likely to keep them unchanged than cut or raise them.