...- The Federation of Bosnia and Herzegovina (FBiH) operates in a complex national political environment, which results in a lack of coordination among various government levels and weaker financial planning compared with global peers. - As a result, FBiH has consistently failed to spend all of its capital expenditure budget, resulting in positive balances after capital accounts that we anticipate will continue, albeit smaller than in the past. - We therefore project a downward debt trend, for FBiH and its public companies, although an improvement in planning and acceleration of capital expenditure could reverse this trend. - In our view, market access for FBiH should remain satisfactory. FBiH benefits from access to necessary financing from multilateral organizations, access to domestic short-term funding, and a positive internal liquidity position. - We therefore assigned our 'B+/B' long- and short-term issuer credit ratings to FBiH, with a stable outlook....
