Zagreb has officially entered a new financial era.

The international agency S&P Global Ratings has raised the credit rating of the Croatian metropolis from 'BBB+' to 'A-' with a stable outlook. This is the first time in history that Zagreb has been placed in the prestigious 'A' category, which in the world of finance represents confirmation of exceptional stability and a low level of risk.

This success is even more impressive when viewed through a broader time frame. In the last 5 years, the city's credit rating has been raised by as many as 5 levels. For comparison, in the same period the credit rating of the Republic of Croatia rose by 3 levels, suggesting that Zagreb's financial recovery is progressing faster and more intensively than the national average.

What exactly is a credit rating and why is it important to the average citizen?

For those who are not involved in economics, a credit rating can be imagined as a grade in school or, more precisely, as proof of a payer's reliability. When a bank or agency gives a high rating, it is telling the whole world that Zagreb is responsible, that it pays its bills regularly, and that it can be trusted with money.

A high rating directly affects citizens' wallets. The better the rating, the lower the interest rates on loans the city takes out for new schools, kindergartens, or trams. Less money spent on interest means more money for public services, without the need for price increases or new levies.

Key reasons for the historic jump

Analysts at S&P Global Ratings point out that Zagreb's financial position has strengthened significantly over the last 3 years. The key factors cited are exceptional liquidity management, meaning the fact that the city has enough cash in its account at all times for all its needs. At the end of 2025, Zagreb had more than 200 million euros in cash available.

The agency particularly praises the transparency of operations and stricter oversight of city-owned companies such as Zagreb Holding and ZET. The consolidation of those companies' debts with the city budget and the end of the practice of 'hidden' borrowing through factoring have been recognized as key steps toward restoring the health of the system.

Zagreb's economic strength as the foundation of stability

Zagreb is not only a political center, but also a strong economic hub. According to S&P Global Ratings data, the city generates more than one third of Croatia's total gross domestic product (GDP). This means that more than 33% of the country's entire economic value is created in the capital.

It is interesting to note that GDP per capita in Zagreb is significantly above the national average. While the national average for 2026 is estimated at around 29,804 dollars, Zagreb's stands at an impressive 48,775 dollars. It is precisely this economic resilience that enables the city to absorb inflation and workers' wage increases without jeopardizing the budget.

Investment momentum with the help of European funds

Despite strict financial discipline, the city is not stopping its investments. An ambitious investment cycle is underway in road infrastructure, educational institutions, sports, and culture. The key to success lies in the fact that Zagreb relies primarily on non-repayable funds from European Union funds.

When it does borrow, the city does so through favorable loans from the European Investment Bank (EIB), rather than through expensive commercial banks. This enables the development of capital projects, such as earthquake reconstruction or water supply modernization, without the danger of uncontrolled debt growth.

What does this mean for the future of Zagreb residents?

Mayor Tomislav Tomašević pointed out that these results have enabled Zagreb, despite global inflation, to keep the prices of municipal services at the same level. While in many cities the prices of kindergartens, homes for the elderly, and public transport have risen, in Zagreb they have remained stable, and for some citizens transport has even become free.

In addition to stable service prices, the high rating also guarantees continued wage growth in the city sector, making Zagreb the most desirable employer in the country with salaries that are already the leading ones in Croatia.

Zagreb's entry into the 'A' league of credit ratings is not just a dry economic story, but a clear signal of the city's transformation from a system burdened by non-transparent debts into a modern, financially stable metropolis. The stable forecast from S&P suggests that with the continuation of this kind of management, the rating could continue to rise in the future. For citizens, this means a city that builds new kindergartens and bridges, but not at the expense of future generations, rather on the foundations of smart and responsible governance.

Today, Zagreb is financially safer than ever before, which is the best foundation for long-term urban development.