S&P Confirms 'Junk' Status of Bulgaria

Business » FINANCE | December 3, 2016, Saturday // 08:43| Views: | Comments: 0
  • Send to Kindle
Bulgaria: S&P Confirms 'Junk' Status of Bulgaria File photo, EPA/BGNES

Ratings agency Standard & Poor's has retained the sovereign rating of Bulgaria as BB+/B, with a stable perspective, the Finance Ministry has said.

Its value remans at a "junk" level, where the country has been since December 2014 due to the developments with Corporate Commercial Bank (Corpbank or KTB), the assistance provided to First Investment Bank, and the overall fiscal deterioration.

Restrictions to the rating include low GDP per capita and institutional weakness, according to S&P.

However, the agency also notes that the economic recovery gathered pace in 2016, with an improved situation on the labour market and a low budget deficit.

However, gains could be negatively impacted by political instability if the latter hampers recovery or looses the fiscal policy.

An increase in the credit rating is tied to the solution of governance problems which would step up GDP growth, a better fiscal situation, and a reduction in external debt levels.

Finance » Be a reporter: Write and send your article
Tags: S&P, junk, Corporate Commercial Bank, Corpbank, KTB, external debt
Expats.bg All Are Welcome! Join Now!
Advertisement
Advertisement
Please, log in to post a comment.
» To the forumComments (0)
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