Moody's: Croatian economy has advantage over Serbia's thanks to EU

Photo: financeswire.com

Croatia's larger, more competitive economy and stronger institutions stemming from EU accession underpin its higher creditworthiness compared to Serbia.

This is according to a peer comparison report published by the credit rating company Moody's, which cited Croatia's rating as "Ba2 stable," and Serbia's as "Ba3 stable."

"Croatia's economy is approximately a third larger than Serbia's, and EU membership facilitated a comprehensive overhaul of its institutions," said Moody's Vice President and co-author of the report Evan Wohlmann, and added:

"On the other hand, the greater reform momentum in Serbia in recent years will support income convergence, and investment is likely to benefit from recent improvements in the country's business environment."

According to Wohlmann's remarks published on the agency's website, both countries "carry...