BOSNIA'S CREDIT RATING REMAINS STABLE

SARAJEVO, Bosnia (September 18,2008) - The Moody’s credit rating agency announced today that Bosnia’s current credit rating – B2 with a stable outlook – is to remain in the following period.In their 2008 report for Bosnia, Moody’s Investor Service explains that the rating reflects stable political and economic challenges for the country. The Bosnian economy continues to grow, but at a slower pace, and the government debt is moderate.

In the opinion of analysts, institutions of the Bosnian state are still weak, by both global and regional standards. The process of their strengthening is slow due to the country’s complex structure and insufficient amount of cooperation between different levels of government.

According to Moody’s, Bosnia’s financial strength is medium-grade, economic and institutional strength levels are low, and the country’s sensitivity to risks is high. 2007 was the fourth consecutive year of a fiscal surplus, and the Bosnian banking system is such that serious financial crises do not seem likely.

Moody's Corporation is the holding company for Moody's Investors Service which performs financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. The company has a 40% share in the world credit rating market.

Moody's was founded in 1909 by John Moody (1868 - 1958),who was a U.S. financial analyst and investor. He pioneered the rating of bonds and founded Moody's Investment Services. Moody's Manuals are still issued, carrying on the tradition begun by the seminal Moody's Manual of Railroads and Corporation Securities and continued by the annual Moody's Analyses of Investments.
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