S&P: Bulgaria upgrade prospect dims

Standard & Poor's said that the prospects for a ratings upgrade on the Republic of Bulgaria (foreign currency BBB-/positive/A-3; local currency BBB/positive/A-3) are undimmed following elections on Saturday.

The ratings were originally placed on positive outlook in February on the back of robust economic growth prospects as well as debt reduction that is proceeding faster than previously expected.

The opposition Bulgarian Socialist Party (BSP) took the largest share of the vote at Saturday's parliamentary elections but fell well short of an outright majority. With slightly over 30% of votes cast, the BSP will need to look for support from other parties, and the shape of a BSP-led government remains unclear for the time being.

The minority Turkish Rights and Freedom Party, which has held the balance of power in most post-communist governments, and the previous ruling party, the National Movement for Simeon II, are likely to be asked to be part of a broad-based national coalition.

© 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.