The Zagreb Holding utility management company on Thursday said that Moody's has upgraded its and the City of Zagreb's credit rating from Ba2 to Ba1, changing its outlook to stable from positive.

A Moody’s report states that, among other things, the City of Zagreb’s improved credit rating reflects the state’s upgraded rating and the continuation of good budget management practice on a stable financial basis, which should contribute to withstanding the impact of the coronavirus pandemic.

Upgrading Zagreb Holding’s rating is based on a very strong connection with its owner, the City of Zagreb, its clear public policies and the Holding’s key role in the utility sector in Zagreb, the company said in a press release.

Moody’s last Friday upgraded Croatia’s credit rating by one degree, from ‘Ba2’ to ‘Ba1’, the highest level in the non-investment category, changing the outlook to stable from positive.