Croatia’s Junk-Rating Outlook Cut by S&P to Negative on Debt
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The outlook on Croatia’s junk credit grade was lowered by Standard & Poor’s, which said the Adriatic nation’s debt burden will swell while economic and fiscal overhauls are “lackluster.”
S&P cut its outlook to negative from stable, leaving the the sovereign-debt assessment at BB, two steps short of investment grade and on par with Paraguay and Guatemala. Fitch Ratings has Croatia at BB, also two notches off investment status, while Moody’s Investors Service rates it one level higher, at Ba1.