S&P Cuts Bulgaria's Rating to BBB-

Business » FINANCE | June 14, 2014, Saturday // 10:58| Views: | Comments: 2
  • Send to Kindle
Bulgaria: S&P Cuts Bulgaria's Rating to BBB- Photo: EPA/BGNES

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.

Finance » Be a reporter: Write and send your article
Tags: Standard and Poor's, Bulgaria, rating
Expats.bg All Are Welcome! Join Now!
Please, log in to post a comment.
» To the forumComments (2)
peterperfect - 15 Jun 2014 // 07:58:38

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.

Optimistic. - 14 Jun 2014 // 22:38:27

This is all lies and propaganda paid for by Borisov and George Soros

Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria