World Economy

Bulgaria Credit Rating Stable

Bulgaria Credit Rating StableBulgaria Credit Rating Stable

The Bulgarian Finance Ministry announced on Friday that Standard & Poor’s Ratings Services has affirmed its ‘BB+/B’ long- and short-term foreign and local currency sovereign credit ratings on Bulgaria. The outlook is stable, BTA reported. The ratings are supported by the government’s moderate net debt position, estimated at nearly 20% of 2015 GDP. The ratings on Bulgaria are constrained by its relatively low income levels, with GDP per capita estimated at $6,800 in 2015 and weak institutional settings. Bulgaria’s financial sector continues to face important challenges, but efforts are underway to mitigate risks, including an asset quality review slated for 2016. The agency estimates that the Bulgarian economy will grow by 3% in 2015 supported by the government’s efforts to increase the absorption of EU structural and cohesion funds but prospects for 2016-2018 are somewhat weaker. The general government deficit is expected to narrow to 2.8% of GDP in 2015 on an accrual basis and thereafter gradually narrow to 2% of GDP in 2018.