Serbia received its first investment-grade credit rating when Standard & Poor’s (S&P) Global Ratings upgraded the country’s long-standing ranking from BB+ to BBB- with a stable outlook, according to bne IntelliNews.
With the ranking, Serbia became the first country in the Western Balkans and the only EU candidate nation to achieve investment-grade status. President Aleksandar Vučić stated:
This is a significant moment for Serbia. After almost a decade of hard work, Serbia has reached investment-grade status for the first time in history, signalling our stability and attractiveness as a destination for global investors.
An upgrade to investment grade would lower borrowing costs, increase access to international capital markets and enhance investor confidence. The country has long sought institutional investors whose mandates often limit them to investment-grade countries.
There are investors who have wanted to invest in Serbia but were unable to because of rating restrictions. Now, we’ve opened the door for them.
Prime Minister Miloš Vučević supported Serbia’s efforts. Finance Minister Siniša Mali also welcomed the rating as a “well-deserved confirmation” of Serbia’s sound macroeconomic policy.
This shows that we are on a successful path of continuous economic growth and macroeconomic stability.
S&P’s decision follows a decade of sustained economic reforms. The agency’s report highlights Serbia’s accelerating growth, falling inflation, narrowing current account deficit and record high foreign exchange reserves as key factors behind the decision. The country’s real GDP is projected to reach 3.8 per cent in 2024.
High foreign exchange reserves and diversified foreign direct investment have strengthened Serbia’s ability to weather external shocks.
The Governor of the National Bank of Serbia, Jorgovanka Tabaković, called the rating upgrade a “historic step.” She emphasised that Serbia entered “the ranks of countries that are particularly important on the world investment map.”
