The news that Fitch revised Croatia's outlook to positive and affirmed the IDR at 'BBB+', after in mid-September Standard & Poor's also revised the country's outlook from stable to positive and affirmed its BBB+/A-2' ratings, was welcomed by Prime Minister Andrej Plenkovic on Friday.

Plenkovic emphasised that two big credit rating agencies have affirmed the highest credit rating that the country has had so far and have revised its outlook from stable from positive in a few weeks, pointing out that in its latest report, Fitch says that “Croatia has recorded the second-highest cumulative growth in the EU since the pandemic shock.”

Real GDP is 13% higher compared with the pre-pandemic 4Q19, while income levels reached 73% of the EU average at end-2022, the PM quoted the agency’s report.

The government’s strong measures as well as the agility of Croatia’s businesses and labour force have contributed to this speedy recovery from the pandemic and the energy crisis, he says in his comment on Fitch’s decision.

Croatia’s credit rating used to be below investment grade to rise now to the level just a step away from the highest A level, the premier said adding that the Fitch agency has recognised the importance of Croatia’s admission to the euro area and the achievements in the political, economic and financial stability.

The agency has also recognised a balanced budget performance, falling public debt/GDP ratio and the implementation of reforms within the National Recovery and Resilience Plan, Plenkovic said.

Croatia is the only country to have its credit rating upgraded by two grades by all the Big Three credit rating agencies (Fitch, Moody’s and Standard & Poor’s) since the COVID crisis to date.

All the three agency keep Croatia’s credit rating within investment grade, as a result of the country’s entry into the euro area.