S&P Global Ratings revised its outlook on Bulgaria to positive from stable, citing the country's improving domestic financial conditions and stronger fiscal and external buffers.
Bulgaria's long-term and short-term sovereign credit ratings were affirmed at BBB- and A-3, respectively, as part of the action.
The rating agency said Bulgaria has the fiscal space to respond to potential external and domestic shocks, a function of its low debt burden. For the fourth consecutive year, Bulgaria's net general government debt is expected to decline again in absolute terms in 2018, according to S&P.
"Despite bouts of political instability, Bulgarian authorities have consistently endeavored to maintain low levels of public debt, and substantial levels of liquid fiscal assets," said S&P, which also projected Bulgaria to post an average general government deficit of just 0.2% through 2021, following a 0.9% surplus in 2017.
Bulgaria's strong economic expansion is expected to continue in 2018, S&P said, with real GDP growth rising to slightly below 4% after staying above 3% over the past three years.
Fitch Ratings also affirmed Bulgaria's long-term foreign and local currency issuer default ratings at BBB, with a stable outlook.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
