March 21 Fri Mar 21, 2014 6:24pm EDT
March 21 (Reuters) - Moody's Investors Service cut its outlook on Croatia's "Ba1" government bond rating to "negative" from "stable," citing weak recovery from recession due to the country's flawed economic outlook.
The outlook revision is driven by "Croatia's impaired medium-term economic outlook, owing to competitiveness challenges, continued deleveraging and the growth-dampening effect of fiscal consolidation efforts," Moody's said. (r.reuters.com/wez77v)
The ratings agency affirmed Croatia's "Ba1" rating, citing the country's entry into the European Union's Excessive Deficit Procedure in 2014, which mandates policy action by the country to lower fiscal deficits and debt ratios. (Reporting by Kanika Sikka in Bangalore; Editing by Kirti Pandey)
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