Bulgaria’s credit ratings affirmed

UniCredit Bulbank AD
Fri, 03/07/2015

The long-term foreign currency ratings of the Republic of Bulgaria were affirmed in June by Moody’s, Fitch Ratings (Fitch) and Standard & Poor’s (S&P).                                                                                                                                    

Moody’s affirmed Bulgaria’s Baa2 government bond ratings with a stable outlook. Among its motives for the ratings affirmation, the rating agency stated Bulgaria’s resilient economy with gradually improving growth prospects in the medium-term and the country’s stable external position.

Bulgaria’s long-term foreign currency rating was affirmed by Fitch at BBB-, outlook stable. The rating agency explained its actions with the sovereign’s lower level of domestic and external indebtedness relative to Bulgaria’s BBB range peers and its sufficient level of foreign reserves providing stability to the existing currency board regime. “These factors offset large structural weaknesses in the economy, which constrain higher trend growth”, Fitch added.

S&P affirmed Bulgaria’s long-term foreign currency rating at BB+ with stable outlook. The ratings affirmation was explained by S&P with their expectation that Bulgaria’s government finances will stabilise and then gradually improve over the next four years. S&P added that Bulgaria’s financial sector continues to face important challenges but also noted that efforts are underway to mitigate risks.

 

Contact:
Borislav Hitov
Head of Global Securities Services Bulgaria
borislav.hitov@unicreditgroup.bg