NBS: Standard & Poor’s Affirms Serbia’s Credit Rating at BB+

Standard & Poor’s has affirmed Serbia’s credit rating at BB+, with a stable outlook, despite the still pronounced international risks and consequences of geopolitical developments on the global economy, as announced on the portal of the National Bank of Serbia (NBS).

– The fact that despite all global uncertainties it is faced with, Serbia is still a notch away from investment grade is another confirmation that it pursues an adequate economic policy against the backdrop of a multidimensional crisis that has been underway for more than three years – said NBS Governor Jorgovanka Tabaković commenting on the issuance of Standard & Poor’s report.

Standard & Poor’s underlined that by lifting the key policy rate gradually, Serbia prevented a further spread of inflationary pressures, and that medium-term inflation expectations remained largely anchored thanks to the monetary policy credibility, monetary tightening and the maintained relative stability of the exchange rate. It is added that inflation is expected to recede in the second half of the year.

– The agency underlined the proven credibility of Serbia’s overall economic policy, its favorable long-term growth prospects, fiscal discipline, lower financing needs and the downward trajectory of public debt. It also noted the high FDI inflows which played an important role in expanding export capacity and increasing their diversification, as well as in boosting the country’s FX reserves, which are projected to remain adequate even in the medium-term – it is said on the NBS portal.

The agency also assessed that the financial sector is well-capitalized, liquid and profitable, and that the share of NPLs in total loans is at a minimum of 3%.

As preconditions for obtaining investment grade going forward, Standard & Poor’s lists accelerated economic growth and further decrease in the fiscal and current deficits, which – as in the case of other economies – will also depend on the further course and economic effects of the conflict in Ukraine and overall geopolitical movements.

Narodna banka Srbije Beograd

National Bank of Serbia

NBS

Standard and Poors

Jorgovanka Tabakovic

credit rating of Serbia

affirmation of the credit rating of Serbia

investment rating

getting an investment rating

inflation projections

inflation trends

monetary policy

fiscal policy

coordination of monetary and fiscal policy