Rating agency Fitch has confirmed Bulgaria’s long-term foreign currency issuer default rating (IDR) at BBB- and its long-term local currency IDR at BBB, with the outlook on both ratings as stable, local media said, quoting news agency Reuters.
The agency said that Bulgaria’s short-term rating was F3 and country ceiling BBB+.
The decision reflects Bulgaria’s successful fiscal consolidation, stable monetary policy and rebalancing the economy, the agency was quoted as saying.
Among the negative factors, the agency said that economic growth in the country remains weak and there remains a material risk that Bulgaria would be affected by the strengthening of the crisis in the euro area through financial and trade channels. Some structural weaknesses affecting the Bulgarian rating were noted, such as the lowest GDP per capita in the EU, the need to reduce high unemployment and improving the quality of the labour market.
Fitch predicts growth of the Bulgarian economy of 0.9 per cent in 2012, driven by domestic demand as the increased absorption of EU funds boosts investment in public and private sectors, along with less reliance on exports as the crisis in the euro zone continues.
(Photo: Ivan Philipov/sxc.hu)