Credit rating agency Moody's has flagged Bulgaria for an upgrade due to an expected strengthening in the country's fiscal metrics thanks to "prudent" policy making.
Moody's changed the outlook on the government of Bulgaria's credit ratings to positive, indicating they could be upgraded. The country's long-term issuer rating in foreign and local currency, as well as senior unsecured foreign currency debt, is rated at Baa2. Bulgaria's senior unsecured medium term note, or MTN, debt program rating is (P)Baa2.
Moody's affirmed Bulgaria's ratings, noting that while the country's fiscal and macroeconomic trends continue to trend upwards, they are offset by ongoing challenges related to they country's constrained labour supply and skills mismatches, worsening demographics and shortcomings in areas such as corporate governance of state-owned enterprises.
Bulgaria's long-term local currency bond and deposit ceilings remain unchanged at A3, and the foreign currency bond and deposit ceilings remain also unchanged at A3 and Baa2, respectively. The short-term foreign currency bond and deposit ceilings are also unaffected by the rating action and remain at Prime-2, Moody's said.
