S&P rating Bosnia and Herzegovina unchanged

In its latest annual report on the sovereign credit rating of BH in 2009, Standard & Poor’s wrote that the country’s rating (B+) remains unchanged, and its outlook is stabile.

According to S&P’s analysts, BH’s credit rating is limited by a complex political system and a big administrative apparatus. This kind of system slows down the process of reforms. Fiscal flexibility and management at the state level remain weak and limited by considerable conditioned obligations, against the backdrop of external exposure, the report reads.

The rating was supported by the fact that the government made external debt servicing a priority, as well as by the role of the Credit Board of BH. It might be jeopardized by failure to revise budgets.

News source: Limun.hr link: article