Standard & Poor's Ratings Services said it affirmed its 'BBB/A-3' foreign currency and 'BBB+/A-2' local currency sovereign credit ratings on the Republic of Croatia. The outlook is stable. "The ratings on Croatia are supported by its strong record of reform and structural economic improvement over the past few years, by the policy anchor provided by EU integration, and by the economy's good growth prospects, " said Standard & Poor's credit analyst Remy Salters. "These factors are offset by Croatia's high, albeit stabilizing, private sector net external debt burden, by the need for further structural reforms, and by significant reliance on the performance of the tourism sector. " Croatia's negotiations for EU membership underpin the strength of the policy anchor provided by EU integration. The government is steadily pursuing structural reforms, in particular by restructuring the remaining loss-making public enterprises.