S&P raises Bulgaria

S&P said it raised Bulgaria’s sovereign long-term credit rating to BBB from BBB-.

“The upgrade reflects that we expect Bulgaria’s economy to grow resiliently and post strong fiscal results,” said S&P in a press release.

Low government and private-sector debt, and the recent current account surpluses helped external deleveraging, providing Bulgaria with buffers if an external shock were to arise. “At the same time, growth has not been coupled with the buildup of significant macroeconomic imbalances. Despite a tightening labor market, we think that external competitiveness has continued, because the country’s share in world trade has risen over recent years,” the agency said.

S&P said it sees Bulgaria’s economy growing by 3.6% and unemployment dropping to 4.4% this year. In addition, the agency sees growth averaging about 3% in 2020-2022.

The outlook is stable.

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