July 3 (SeeNews) - Serbia may achieve an investment-grade credit rating by 2021, backed by solid economic growth, Erste Group said.
"This could be achieved, given that the fundamentals have improved greatly in the last few years," Erste Group said in a macroeconomic insights report earlier this week.
The Serbian bond market will remain attractive for international investors if the dovish bias of global central banks remains, Erste Group said.
Erste said last month it expects Serbia’s economic growth to accelerate to 3.5% in 2020, from 3.3% forecast for this year, on the back of private consumption. Serbia's gross domestic product (GDP) grew by a real 2.5% year-on-year in the first quarter of 2019, the country's statistical office said in May.
In April, Serbian finance minister Sinisa Mali said the government has prepared a clear plan on how to achieve an investment-grade credit rating in the next two years
Serbia currently has a BB credit rating from both Standard and Poor’s (S&P) and Fitch, as well as a Ba3 credit rating from Moody's, all equivalent to non-investment speculative grade.
Last month, S&P Global Ratings affirmed its BB long-term and short-term sovereign credit ratings on Serbia with positive outlook, reflecting the country’s solid economic expansion, a prudent fiscal stance and the government’s commitment to implementing the reforms supported by the policy coordination arrangement with the International Monetary Fund (IMF).