The Credit Rating Evaluation And Its Consequences (Case Of Bosnia And Herzegovina)

The credit rating level is indicator which is created for financial investors (creditors, stockholders etc.) to be used for risk dispersion and investments profitability evaluation in certain countries and enterprises. It is so important for transitional countries whose economic development significantly depends of FDI entrance and creditworthiness on international financial market. Bosnia and Herzegovina has experienced the credit rating decreasing on two occasions during the 2011. The subject of this paper is the consideration about sovereign credit rating on the example of Bosnia and Herzegovina through the next items: the nature and content of credit rating, methodology of credit rating evaluation, the importance of certain credit rating determinants, credibility of agencies for credit rating evaluation and possibilities for credit rating increment.