Standard & Poor's: Bulgaria's Credit Rating Upgraded

2009-12-03   |

International credit rating agency Standard & Poor's said on Wednesday it affirmed Bulgaria's sovereign debt ratings and upgraded the outlook due to the government's prudent fiscal policy.

S&P said in a statement that it had affirmed Bulgaria's long-term sovereign credit rating to "BBB." The short-term rating was also affirmed at "A-3."

At the same time, the rating agency revised upwards the outlook for Bulgaria's credit to to stable from negative as a result of the government's "strong record of prudent fiscal policy and low gross debt, solid growth prospects over the medium term and EU membership."

Nevertheless, Bulgaria continued to face economic risks due to the uncertain outlook for external demand and the sharp tightening of the external commercial credit availability, it cautioned.

Even in the current economic environment, Bulgaria still stood a fair chance of being able to curb its ballooning current account deficit to around 10 percent of gross domestic product in 2009 from 25.4 percent of output in 2008, the agency said.

"We expect the deficit to be fully funded by foreign direct investment flows," it said.
S&P's growth forecast saw the Bulgarian economy shrinking by 6.0 percent in 2009 and by a further 2.0 percent in 2010 before returning to growth in 2011. That is in line with the government's own forecasts and that of the International Monetary Fund.

S&P analyst Marko Mrsnik praised the the new right-wing government's commitment to fiscal discipline and deficit-reducing measures.

S&P sees the budget deficit amounting to 1.0 percent of GDP, the lowest in the EU, and estimates the government will be able to keep a tight budget in 2010 as well.
Given the severe recession, however, S&P cautioned that the financial sector "will continue to be under pressure."

  Read more news

Properties in Bansko
Buy your own property in the top ski resort of Bansko! An all-year-round resort suitable for winter and summer tourism with the best prices in Europe! Prices starting from as low as 10,000 Euros!
See More

Îůĺ Íîâčíč

Street Food & Art Festival in Burgas is a New Concept for an Urban Festival

Street Food & Art Festival is a new concept for an urban festival, its organizer Nikolay Todorov told Focus Radio.

The festival, held with the support of Burgas Municipality, is taking place in Burgas. More than 15 of the Best Street Food culinary artists in Bulgaria have been invited, Todorov said. "We are talking about mobile kitchens, kitchens on wheels, caravans, campers, truck... read more

13 August, 2019
Archeologists unearth church from 6th century near Gabrovo

An early Byzantine church, 20 by 10 meters in size, made from rock blocks and brick layers, with a floor lined with ceramic tiles has been discovered by archaeologists.

It has two entrances on the south and west sides and an interesting altar section, as it had benches where clergymen were sitting, as well as a bishop's throne in the central place, Professor Hitko Vachev said. He a... read more

13 August, 2019
Seaside Garden in Varna turns into large-scale arts and crafts exhibition

For the 23rd time the International Fair of Crafts and Arts “Bulgarika” will become a venue for a big number of artists and craftsmen. In the period August 1– 21, some of the best artisans in the fields of fine and applied arts, crafts and music will participate in it. Traditionally, the audience will actively participate in the fair as they will be able to take part in crafts or arts workshops or... read more

13 August, 2019
Staro Zhelezare village once again hosts Street Art Village Festival

Until the end of August, the village near Plovdiv is once again hosting Staro Zhelezare Street Art Village Festival.

The village itself has no more than 400 inhabitants. Every year the people behind this project – artists Katarzina and Ventsislav Piryankovi and students of theirs from Poznan, Poland, transform the place, painting and drawing on the walls of houses and fences.
... read more

13 August, 2019