Podcast in English
Bulgarian National Radio © 2022 All Rights Reserved

Fitch Ratings affirms Bulgaria’s credit rating at 'BBB' with a positive outlook

Photo: archive

The international rating agency Fitch Ratings has affirmed Bulgaria’s foreign-currency issuer default rating (IDR) at 'BBB' with a positive outlook, the Ministry of Finance press centre has announced.

It has a positive outlook and reflects the country’s plans of membership of the Eurozone. According to Fitch Ratings, short-term downside risks tied to the coronavirus pandemic have eased and are more than offset by prospects of substantial EU funding for investment and a broad commitment to macro and fiscal stability (anchored by the inclusion since July 2020 of the Bulgarian lev into Exchange Rate Mechanism II; ERMII). Fitch forecasts average inflation will rise to 5.2% in 2022, the highest rate since 2008. After a better-than expected outturn with a government deficit of 3.8% in 2021 due to strong revenue growth, we expect the general government deficit to fall to 3% in 2023 from 4.6% this year, Fitch writes. This would be consistent with the public debt/GDP ratio increasing to 30% in 2023, from 20% in 2019 and still well below the current 'BBB' median of 60.3%.

According to Fitch Ratings, Bulgaria's banking sector maintained adequate liquidity through 2021 and capitalisation remained solid. The agency warns that a delay in the timeline of Eurozone accession, a prolonged rise in public debt, or weaker growth prospects could lead to to negative rating action/downgrade. 

Listen to the daily news from Bulgaria presented in "Bulgaria Today" podcast, available in Spotify.

More from category

Annual inflation in Bulgaria hits 14.4%: National Statistical Institute

The monthly inflation in Bulgaria in April has been estimated at 2.5%, as the prices of food products and non-alcoholic beverages rose by 4.5% . The main upward pressure on inflation in April was exerted by the prices of clothing and footwear, which..

published on 5/17/22 12:03 PM

Apocalyptic forecasts for Bulgarian economy in case of drastic fuel price rise

Unpredictability in the sphere of energy has a detrimental effect on the Bulgarian economy. "At the moment nobody knows what the price of natural gas is," Dobri Mitrev, chair of the Bulgarian Industrial Association has told BNR, adding..

published on 5/12/22 1:35 PM

As oil prices rise, small petrol stations in Bulgaria struggle to survive

The European Commission’s intention to impose an embargo on Russian oil, effective by the end of the year at the latest, has sparked strong reactions.   Hungary’s Prime Minister Viktor Orban called it an “atomic bomb” on the country’s..

published on 5/10/22 12:00 PM