...- The Federation of Bosnia and Herzegovina (FBiH)'s economic growth prospects are affected by internal political tensions, which hinder collaboration and create uncertainty for investment. - FBiH has consistently under-executed its capital expenditure, leading to positive balances in its capital accounts. We expect this trend to continue, although it will be less pronounced than previous years due to the lingering effects of inflation. - We anticipate a reduction in debt. However, any improvement in management's ability to plan and execute investments may lead to faster debt accumulation. - In our view, market access 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 affirmed our 'B+' long-term issuer credit rating and 'B' short-term issuer credit rating on FBiH, with a stable outlook....
