Fitch affirms Bulgaria at ‘BBB’ with positive outlook


Photo by esfera/

Fitch Ratings has re-affirmed Bulgaria’s sovereign long-term foreign and local currency Issuer Default Ratings (IDRs) at "BBB", with a positive outlook, according to the Sofia Globe.

Photo by esfera/

The agency said that the country’s ratings were based on “strong external and fiscal sheets and credible policy framework, underpinned by EU membership and gradual progress towards euro membership”, but were “constrained by slightly lower income levels compared with the current ‘BBB’ median and unfavorable demographics,” Sofia Globe said on February 20.

Fitch forecast Bulgaria’s average real gross domestic product growth at 3.3% in 2020-2021, noting that “weakness in the external environment, and particularly in the eurozone, has not yet significantly affected” the country.

But the agency cautioned that “ongoing external uncertainty and a projected recovery in imports” would likely lead to “sharper slowdown in headline growth” in the coming quarters.

On Bulgaria’s formal application to join the euro waiting room, the Exchange Rate Mechanism (ERM2), Fitch said that “increased public debate about euro adoption and the mechanics surrounding the leva peg under ERM2” has raised the risk of delays.

“However, Fitch believes that both the Bulgarian and European authorities remain committed to finalizing the process, with a likely positive final decision in 2H 2020,” Sofia Globe added.


European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.