Moody's ups Bulgaria debt

Moody's Investors Service said it upgraded Bulgaria's government debt ratings to Baa2 from Baa3, reflecting its ongoing fiscal discipline and improving institutional strength as well as the financial system's relative resilience in a volatile regional environment.

The outlook is stable.

This rating action concludes the review for possible upgrade that was announced on April 5, the agency said.

The upgrade of Bulgaria's government ratings was motivated by effective fiscal consolidation supplemented by recent structural reforms, strengthened institutional capacity thanks to determined efforts to increase the absorption of EU funds and to reform systems such as the judiciary and the police in order to improve the rule of law, and strong liquidity and capital buffers of both the financial system and the government, the agency added.

The Baa2 rating takes into account successive Bulgarian governments' strong track record in managing the public finances over more than a decade and policymakers' clear determination to maintain such discipline going forward, Moody's said.

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