investment grade

Serbia’s Investment-Grade Rating Has Yet to Eliminate Its Emerging-Market Risk Premium

Serbia’s sovereign credit standing has improved, but borrowing costs continue to reflect international investors’ assessment of emerging-market risks. The gap between stronger credit fundamentals and the premium demanded for uncertainty remains visible in the country’s external financing conditions. S&P rates Serbia BBB- with a stable outlook, following its decision to raise the country to investment grade in October 2024. Fitch maintains a BB+ rating with a positive outlook, while Moody’s assigns Serbia Ba2 with a stable outlook. Despite the investment-grade…