S&P boosts Sofia to BB+

Standard & Poor's said it raised its long-term issuer credit rating on the Bulgarian City of Sofia to BB+ from BB based on growing revenues and improved budgetary performance.

The outlook is stable.

The rating on Sofia, the capital of the Republic of Bulgaria (BB+/stable/A-2), is constrained by the city's low financial flexibility, caused by high dependence on central government transfers and strong state control over revenues and expenditures, the agency said. It also is constrained by still relatively weak performance and high infrastructure financing needs, S&P said.

These factors are partially mitigated by high economic growth, which results in increasing revenues and improving operating performance and a favorable debt profile, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.