No polls shift in Serb credit rating

Standard & Poor’s Ratings Services said yesterday that the outcome of Sunday’s Serbian general elections would not have an immediate impact on the sovereign credit ratings of the Republic of Serbia (BB-/Positive/B). The policy response of any eventual coalition government to the country’s challenging political risks, however, will be a crucial factor for the ratings. In particular, these political risks include the pending decision on the future of Kosovo, and cooperation with the war crimes tribunal at The Hague, which is currently delaying talks on EU integration. If a coalition were formed that causes increased political volatility, or opts for a significant reversal from Serbia’s structural reform and stabilization efforts, this could pose a risk to the ratings on the sovereign. (Reuters)