On the 1 st December 2009, Standard & Poor’s said:
– We are revising our outlook on the Republic of Bulgaria to stable from
negative, and affirming the ‘BBB/A-3’ sovereign credit ratings.
– The stable outlook reflects our view of the government’s commitment to
fiscal discipline, and our expectation that the government will implement
structural reforms in the social security system.
LONDON (Standard & Poor’s) Dec. 1, 2009–Standard & Poor’s Ratings Services
today said it had revised its outlook on the Republic of Bulgaria to stable
from negative. The ‘BBB’ long-term and ‘A-3’ short-term sovereign credit
ratings were affirmed.
The ratings on Bulgaria reflect our view of the government’s strong track
record of prudent fiscal policy and low gross debt; solid growth prospects
over the medium term; and the country’s EU membership. Offsetting these
strengths somewhat are large external imbalances and the related risks as a
result of the adverse economic environment, which we expect to continue in
In our view, Bulgaria continues to face economic risks due to the
uncertain outlook for external demand and the sharp tightening of the external
commercial credit channel, which negatively affects domestic demand. As a
result, the current account deficit, which peaked in 2008 at 25.4% of GDP amid
an overheating economy, has contracted sharply and is expected at around 10%
in 2009 (we expect the deficit to be fully funded by foreign direct investment
flows). We expect GDP to contract by around 6% in 2009 and a further 2% in
2010, followed by a positive growth rate in 2011…
This material was taken from www.standardandpoors.com