"The bond has a coupon of 6.250% and is due 27 April 2017. The rating is in line with Croatia's Long-term foreign currency Issuer Default Rating (IDR), which has a Negative Outlook," Fitch Ratings reported on Friday.

"On 2 March 2012, Fitch affirmed Croatia's Long-term foreign currency IDR at 'BBB-' and Long-term local currency IDR at 'BBB'," the agency recalled.

"The Outlooks on the Long-term IDRs are Negative. Despite some positive policy steps by the new government, further fiscal consolidation measures and structural reforms are required to boost economic growth and stabilise public finances. Croatia's sizeable budget deficit, high public and external debt ratios, and the difficult external financing environment mean that risks to creditworthiness are still on the downside. Nevertheless, the ratings are supported by its high levels of GDP per capita and human capital, a track record of low and stable inflation, relatively good governance and prospective EU accession, a well-capitalised banking sector and its financing flexibility."