Fitch affirms Bulgaria's long-term foreign IDR at BBB-, stable outlook.

By bne IntelliNews July 19, 2012
International rating agency Fitch said it has affirmed Bulgaria's long-term foreign and local currency Issuer Default Ratings (IDR) at BBB- and BBB, respectively, reflecting successful fiscal consolidation and stable monetary policy. The outlook on both ratings is stable. Fitch has also affirmed Bulgaria's short-term rating at F3 and Country Ceiling at BBB+. Upward revision of the rating is hindered by weak growth and the still material risk of contagion from intensification of the eurozone crisis. Bulgaria's GDP will grow by 0.9% this year, according to the agency's estimates, driven by domestic demand and increased EU funds absorption and to a lesser extent by exports. Economic growth will accelerate to 1.9% and 2.5% in 2013 and 2014, respectively, provided that Greece remains in the eurozone. Broad political consensus on fiscal consolidation in the country and rapid current account adjustment also contribute to the stable outlook of the country. On the downside, structural weaknesses including low GDP per capita (the lowest in the EU), and the need for reforms to reduce the high unemployment rate and increase the quality of the local labour market, continue to weigh on the country's ratings.

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335