Moody's: Bosnia, Herzegovina view to negative

Moody's Investors Service said it changed the outlook on the B2 government ratings of Bosnia and Herzegovina to negative from stable, citing the ongoing political stalemate and related delays in economic and constitutional reform.

Moody's also said it placed a negative outlook on Bosnia and Herzegovina's Ba3 ceiling for foreign-currency debt and its B3 ceiling for foreign-currency bank deposits.

The negative outlook reflects the heightened tensions between the country's three main ethnic groups, which have produced a political stalemate and prevented the formation of a state-level government more than seven months after last October's election, the agency said.

The negative outlook also reflects concerns about the impact of the ongoing political stalemate on its embryonic state-level institutions, Moody's added.

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