Article: CROATIA: MOODY'S ISSUES ANNUAL REPORT ON CROATIA.

In its annual report on the country, Moody's Investors Service says that Croatia's Baa3 government ratings are supported by the progress made in aligning its institutions with the EU over the past several years, despite intermittent setbacks. "Croatia's ratings are also constrained by the high level of euroization of the government debt and the financial system," said Assistant Vice President Joan Feldbaum-Vidra, Moody's sovereign analyst for Croatia. "These factors heighten the country's external vulnerability in the event of a fall in the value of the kuna." The analyst points out that the Croatian banking system is largely foreign-owned, and that many of ...

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