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BELGRADE -- Dun and Bradstreet (D&B), the world's largest credit rating agency, has lowered Serbia's rating from moderate to high-risk countries.

Serbia is also marked as a country with indications of a downward trend.

As stated by the D&B representative for Serbia and Montenegro, the main reasons are decelerated economic growth and growing fiscal deficit.

D&B has lowered Serbia's rating due to growing budget deficit, which in the period from January to July reached the value of RSD 111.2 billion, which up by 32 percent on an annual level, totaling 79 percent of the planned deficit of RSD 140 billion for the entire year.

The deficit growth stems from two factors - the previous government which was spending irrationally ahead of the May elections, and revenues which recorded a drastic drop due to the decelerated economic growth, the analysis says.