"The decision to stop using rating services was made in order to cut costs and adjust the number of ratings to the bank's needs," the bank said in the statement.

It added that it would continue receiving direct ratings from Standard & Poor's and Fitch Ratings.

Moody's Investors Service on Thursday withdrew ZABA ratings, citing its own business reasons.

The agency withdrew ZABA's D+ standalone bank financial strength rating, Baa2/Prime-2 long and short-term global local currency (GLC) deposit ratings, and its Ba1/Not Prime long and short-term foreign-currency deposit ratings.

"Moody's Investors Service has withdrawn the credit ratings for its own business reasons," the agency said, adding that "ZABA's ratings were affirmed before being withdrawn and that at the time of withdrawal all ratings had a stable outlook."

Moody's expects that credit conditions in Croatia will remain weak in 2011 in light of a slow economic recovery, which will maintain pressure on local banks' asset quality and performances. The rating agency expects that ZABA's non-performing loans will continue to rise at least during the first half of the year, although its strong capitalisation affords it a good buffer to absorb anticipated asset quality pressures.