Fitch rates Serbia bonds BB-

Fitch Ratings said it assigned long-term foreign and local currency ratings of BB- to the Republic of Serbia. The outlook is stable.

The agency also assigned the rating of BB- to the dollar-denominated global bonds maturing in 2024 arising from the recent exchange with the London Club of commercial creditors and to euro-denominated domestic bonds known as "Frozen currency" bonds.

At the same time Fitch assigned a short-term rating of B and a Country Ceiling of BB-.

"Serbia's BB- ratings are supported by its improving public finances, comfortable public and external liquidity position and good prospects for continued structural reforms and GDP growth, anchored by potential EU accession," said Fitch analyst Edward Parker.

"However, the ratings are constrained by risks associated with Serbia's large current account deficit, structural weaknesses revealed by high unemployment and low export capacity, as well as potential, albeit diminishing, risks of political instability."

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