Sofia Mayor Yordanka Fandakova spoke Sunday with much excitement about Standard and Poor's recent raising of the credit rating of the Bulgarian capital.

On November 5, 2012, the agency increased Sofia's credit rating from BBB- to BBB with a stable perspective, equal to the rating of the Republic of Bulgaria.

"This is the rating of the Bulgarian state as well. The city cannot have a higher rating than the state so for the time being we have reached the maximum," Fandakova said, as cited by Focus news agency.

She has underscored some of Standard and Poor's arguments for improving Sofia's credit rating – such as the strict fiscal discipline, its ambitious capital investment program funded with increased collectability of revenues, and the co-funding of EU funded projects.

"The agency has pointed out that the Sofia Municipality manages to pay its partners in a timely manner. The rating means that all loans for the municipality will have lower interest rates. In fact, the increased credit rating saves us about BGN 500 000 on just two of the loands we have – for the electric transport and integrated public transport," Fandakova added.

The Sofia Mayor explained she was "really very happy" about SP's rating decision, and has thanked the financial team of the municipality.

She also mentioned the rating boost will help the municipality in its application for a EUR 50 M loan from the European Investment Bank for the reconstruction of a number of boulevards and streets in Sofia.

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