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Fitch Ratings revises Bulgaria’s outlook to stable

Fitch Ratings says it has re-affirmed Bulgaria’s sovereign long-term foreign and local currency Issuer Default Ratings at "BBB", but downgraded the outlook from positive to stable, as it expects gross domestic product in the country to shrink by 5.1% in 2020, down from 3.2% grown in its previous forecast. 

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The decline was due to the ongoing lockdown in response to the Covid-19 pandemic, Fitch said, which prompted the agency to bring forward its review of Bulgaria’s credit rating.

The travel and tourism sectors in particular were likely to record sharply negative growth in the first half of the year. Fitch said that it expected growth to rebound to 4.2% in 2021, mainly due to consumption and investment.