Fitch Ratings has affirmed Bulgaria's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB' with a Positive Outlook.
Bulgaria's ratings are supported by its strong external and public balance sheets versus 'BBB' peers and credible policy framework, underpinned by EU membership and a long-standing currency board. The Positive Outlook reflects the prospects for euro adoption, which would lead to further improvement in external metrics. (…) This is balanced by low level of investments/GDP and unfavourable demographics, which weigh on potential growth and government finances over the long term. (…) Bulgaria's HICP inflation is easing but remains significantly above that of the three best performing EU member states, and it does not currently comply with the price stability criterion. Given considerable uncertainty about the inflation trajectory, it remains questionable whether Bulgaria will meet the price stability criterion in mid-2024 (the key date for 2025 euro adoption).
Bulgaria is on course to meet all other euro-adoption nominal criteria (public finances, interest rate and exchange rate). Overall, we consider euro adoption as supportive to the rating, as all else equal, the output of Fitch's proprietary Sovereign Rating Model (SRM) would improve by around two notches, Fitch Ratings states.
The National Assembly voted, at second reading, to give the go-ahead to cooperation with the US for the construction of reactors 7 and 8 of the Kozloduy Nuclear Power Plant. Parliament greenlights nuclear project with US technology..
"Bulgartransgaz" has announced a public procurement for "Organizational planning, investment design, supply of necessary materials and equipment, construction and commissioning of new facilities for the expansion of the gas..
The head of the regular mission of the International Monetary Fund in Bulgaria, Jean-Francois Dauphin, has presented the results of the review of the Bulgarian economy and financial system . The fund's mission began on March 6 and ends today...
Regional policies are needed to address imbalances in employment and economic activity levels in different regions of Bulgaria, taking into account the..
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