Standard & Poor’s (S&P) has affirmed Serbia’s credit rating at BB+, one notch below investment grade, despite pronounced uncertainties in the international environment. S&P has also maintained the stable outlook, confirming the domestic economy’s built-up resilience to numerous global challenges, the National Bank of Serbia (NBS) reports.

In particular, S&P highlights Serbia’s credible macroeconomic policy framework, as well as adequate foreign exchange reserves as an important buffer against shocks coming from the external environment. Significant factors behind the decision to affirm Serbia’s rating include the credible monetary policy pursued by the NBS and the country’s moderate public debt levels. According to the agency, Serbia’s banking sector is well-capitalised, profitable and liquid, whereas non-performing loans are at a historical low.

When it comes to energy, S&P states that Serbian gas storage levels are full for the winter and its oil imports are diversified, which means that Serbia can source oil from other destinations as well.

The agency highlights the new stand-by arrangement agreed with the IMF as an important factor of commitment to advancing structural reforms.

Source: NBS, Momentum