The periodic review has resulted in no rating action.

Euro area membership since 2023, favourable public debt trajectory and sound structural reform momentum support the ratings. High public debt levels, modest growth potential and limited economic diversification remain rating challenges.

Monitoring review announcement

Euro area accession from 1 January 2023 drives the upgrade. Credit challenges are high public debt, modest potential growth and external vulnerabilities.

Substantial euro-area accession reforms drive the Outlook change. Elevated public debt, external vulnerabilities, and low growth potential remain credit challenges.

Monitoring review announcement

No action has been taken on Croatia following a monitoring review

Monitoring review announcement

Improvements in Croatia’s fiscal performance and budgetary framework alongside strengthened external buffers drive the upgrade. High public debt and foreign-currency exposure, low potential growth and institutional weaknesses remain constraints.

The concluded Agrokor debt settlement, Croatia’s improved budgetary performance and strengthening external position drive the upgrade. High public debt and foreign-currency exposure, low potential growth and institutional weaknesses are constraints.