NBS: S&P confirmed that Serbia's credit rating is BB + and stable outlook

NEWS 13.06.2020 17:00
Narodna banka Srbije, NBS
Source: N1

The National Bank of Serbia (NBS) announced that Standard and Poor, S&P, kept Serbia's rating at BB+, confirming stable prospects for its further increase in the coming period.

„Stable prospects for further rating upgrades have been maintained despite the increased risks caused by the COVID-19 virus pandemic thanks to a drastic increase in Serbia’s resilience compared to a decade ago,“ the statement said.

The NBS said that S&P had in its analysis pointed out the increased resilience of Serbia to international shocks thanks to the significantly strengthened foreign currency reserves and the created fiscal room during the previous half of a decade.

„The report states that Serbia entered the crisis with significantly smaller imbalances compared to the previous crisis and was ready to respond to the latest challenges. It is especially emphasized that a credible monetary policy was an important factor in maintaining the rating and stable prospects for its further increase,” it said.

The Central Bank also stated that the Agency pointed out the importance of the package of measures by the Serbian Government worth 11 percent of the gross domestic product for mitigating the negative effects of the pandemic.

„The reference interest rate has been reduced, banks have been provided with additional liquidity through swap lines and repo auctions, and the relative stability of the dinar against the euro was maintained through interventions in the foreign exchange market,” the statement said.