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Fitch revises outlook on Croatia

Fitch Ratings on Jan. 27 revised the outlook on Croatia's long-term foreign- and local-currency issuer default ratings to stable from negative, while affirming them at BB.

Also affirmed were Croatia's BBB- country ceiling and B short-term foreign- and local-currency issuer default ratings.

The outlook revision is driven by a narrowed budget deficit, lessened political risks after the formation of a new coalition government in October 2016 and an increase in real GDP to an estimated 2.8% in 2016 from 1.6% a year ago.