Serbia's ratings affirmed with stable outlook

Serbia's ratings affirmed with stable outlook

'There have been some notable improvements in Serbia's measures of sovereign creditworthiness, bringing them into line with 'BB' medians,' Fitch said.

'Nonetheless, fiscal policy has become more expansionary over the past 12 months, exacerbating macroeconomic imbalances, while political risk mostly associated with the future status of Kosovo will remain uppermost in the near term.'

Political risk remains a material constraint on Serbia's sovereign ratings.

Serbia's ratings are underpinned by its high level of human capital, which, together with its EU market access and perspective, gives it the potential to follow the successful development path of other countries in central and eastern Europe.