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S&P Global Ratings upgraded Bulgaria’s sovereign credit rating to ‘BBB’ from ‘BBB-’ and assigned a positive outlook. The agency cited solid macroeconomic fundamentals and S&P’s expectation that Bulgaria’s economy will grow resiliently, post strong fiscal results and progress toward entering the Exchange Rate Mechanism that could set the country on its way to adopting the euro as its currency.

The move means Bulgaria is rated at the second-lowest investment grade by all of three major credit assessors, international news wires such as Bloomberg and Reuters noted in reporting the latest development.

Moody’s credit rating for Bulgaria was last set at Baa2 with positive outlook. Fitch’s rating for Bulgaria was last reported at BBB with positive outlook.

Bulgaria is targeting a one-off budget deficit of 2.1% of economic output this year, mainly due to a USD 1.26 billion fighter jet deal it signed with the United States and planned larger spending in December.

Economic growth has exceeded 3% for four straight years and is forecast to do so again in 2019 and 2020.