S&P rates Plovdiv bond BB

Standard & Poor's said it assigned its BB senior unsecured debt rating to the debut €25,564,594 domestic bond issued by the City of Plovdiv (BB/positive) in the Republic of Bulgaria.

The issue, launched on Oct. 31, has a maturity of 15 years, the agency said.

"The rating on the bond issue is equalized with that on the city," said credit analyst Marcin Gdula.

The ratings on Plovdiv reflect the city's limited financial flexibility and uncertainties related to the ongoing intergovernmental reform, similar to all Bulgarian cities. In addition, the ratings are constrained by still weak operating performance and contingent liabilities related to the city's loss-making municipal transport company, S&P said, noting that the ratings on Plovdiv are supported by: the city's diversifying and growing economy and expected benefits from economic growth and EU accession.

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