The graduate thesis analyses the methodologies of the country's risk assessment by rating agencies Moody's, Fitch and the Organisation for Economic Co-operation and Development (OECD). The aims of the thesis are: systematize indicators of political and economic risk that influence the country's risk assessment, provide a critical review of the country risk methodologies to identify their advantages and disadvantages, identify key country risk determinants of the Republic of Croatia and to make a projection of the future risk of the Republic of Croatia. The thesis presents an analysis of the indicators of political and economic risks of the Republic of Croatia. The thesis further shows how the country risk of Republic of Croatia has changed throughout history and what is the position of the Republic of Croatia regard to the rest of the EU. Based on the historical country risk trends of the Republic of Croatia and based on the analysis of the political and economic risk indicators, a projection of the future country risk movement of the Republic of Croatia is made. High public debt, government ability, poverty, unemployment and dependence on tourism are indicators that most influence the country risk assessment of the Republic of Croatia.