The Standard & Poor's rating agency raised again Bulgaria's long-term rating two days after the government successfully sold the last sate-owned bank. The long-term local currency sovereign credit rating was upgraded to (BB+) from (BBB-), and the foreign currency sovereign credit rating upped from (BB) to (BB+). The perspective for the long-term ratings was changed from positive to stable.

Meanwhile, Standard & Poor's also raised the short-term local and foreign currency sovereign credit ratings from (B) to (A-3). The agency confirmed the (B) level of the short-term foreign currency sovereign credit rating.

According to Bulgaria's Finance Minister Milen Velchev who broke the news at special news conference on Thursday, Standard&Poor's was inspired to up the rating by the constantly decreasing burden of Bulgaria's foreign debt, the better liquidity and the lasting confidence in the fiscal policy of Bulgaria's government.

Standard & Poor's also stressed that the country's GDP has grown by 4 percent in 2002 and it is expected to go up by 5 to 5.5 percent over the next three years.

Since June 2001 when the current government stepped into office, Bulgaria's foreign debt has melted down from EUR 11.144 B to EUR 8.980 B in 2003, Minister Velchev pointed out.

However, the rating agency highlighted Bulgaria's troubled privatization as a factor that might hold back the country's economic development.