S&P Cuts Bulgaria's Rating to BBB-
Standard and Poor's Ratings Services cut Bulgaria's sovereign credit ratings by one notch to BBB- on Friday.
The main reason, according to the agency, was the country's political environment, which poses risks to much-needed reforms.
S&P said the revision reflects the view that the absence of meaningful progress on reforms will constrain economic growth and keep unemployment high.
"Bulgaria's political environment continues to pose a challenge for the implementation of reforms needed to tackle deep-rooted institutional and economic problems," Standard and Poor's said in a statement. "We expect that the political landscape will remain volatile over the coming months and will likely not be conducive to implementing potentially unpopular reforms," it said.
The credit ratings agency has however revised the country's outlook to stable from negative, citing the low public debt levels of Bulgaria.
The downgrade will probably affect the cost at which Bulgaria can price its pending Eurobonds of up to EUR 1.5 B, needed to fund its budget deficit and roll over maturing global bonds next January.
Bulgaria is rated at investment grade BAA2 by Moody's and BBB- by Fitch. The two hold stable outlook.
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Again Bulgaria is paying the price of inept and corrupt government. When will these people learn they are now in a different world, the rules have changed. Guys, you are SERVANTS of the people, you may lead (is that what you call it) but only because of the people and it is the people who now ultimately call the tune. Eventually the final piece of the jigsaw will fall into place - the people will wake up to the fact that they have the ultimate power to put you in place and to remove you. When that happens we will see true political reform in Bulgaria. That day approaches guys and may not be too far off, my suggestion is to either jump off the roundabout now or learn how to ride it under the new far less corrupt rules.