The international rating agency S&P Global Ratings has increased Bulgaria’s credit rating outlook from stable to positive. The country’s long-term and short-term credit rating in foreign and local currency is confirmed to ‘BBB -/A-3’.

S&P Global Ratings notes that the positive perspective signals a successful improvement in financial conditions as well as strengthening fiscal and external buffers in the country. The S&P Global Ratings analysts expect stable economic growth to continue in line with the upward dynamics of exports and favourable bank credit conditions.

The government’s net debt will continue to decrease in 2018, for fourth year in a row. The external indebtedness is assessed as low and the current account will remain in surplus. The agency hopes that policy duration will be guaranteed as long as the ruling coalition is stable.

According to S & P Global Ratings, the main factors that would lead to an increase in Bulgaria’s credit rating over the next 12-24 months include the continued reduction of bad loans in the banking sector, combined with further progress from increasing the amount of given credits to support economic growth.

A positive impact on the rating will also be the strengthening of the fiscal stance over the projected expectations of the Agency, as well as the entering into ERM II, which would further enhance the credibility of the policy.

Standard & Poor’s is a US-based corporation for financial services. As a credit rating agency, the company assessed debt ratings for public and private companies. Standard & Poor’s is one of the few companies dealing with this, which is defined as nationally recognised statistical and rating organizations from the US on Securities and Stock Exchange. The company prepares long-term and short-term credit ratings.