The international rating agencies S&P Global Ratings and Fitch Ratings upgraded Bulgaria's sovereign rating.
At the beginning of December 2017, S&P Global Ratings and Fitch Ratings both raised Bulgaria’s credit ratings by one notch.
S&P Global Ratings raised its long-term and short-term foreign and local currency sovereign credit ratings on Bulgaria to 'BBB-/A-3' from 'BB+/B' with stable outlook. The main drivers for the rating change according to S&P were:
- expansion of exports;
- less leveraged economy;
- prudent public financial management;
- rise in domestic savings;
- significant reduction of material risk and abrupt shifts in external financing flows, particularly in foreign direct investment.
Fitch Ratings upgraded Bulgaria's long-term foreign and local currency Issuer Default Ratings (IDRs) to 'BBB' from 'BBB-' with stable outlook. This, according to Fitch, was based on the following key drivers:
- prolonged decline in external debt ratios;
- current account surpluses;
- growth in exports supported by export competitiveness and diversifying export base;
- continued strengthening of sovereign external buffer.