site.btaFitch Affirms Bulgaria's Long-Term Foreign Currency Issuer Default Rating at 'BBB-; Outlook Stable

Fitch Affirms Bulgaria's Long-Term Foreign Currency Issuer Default Rating at 'BBB-; Outlook Stable

London, June 20 (BTA) - Fitch Ratings announced on Friday that
it had affirmed Bulgaria's Long-term foreign and local currency
Issuer Default Ratings (IDR) at 'BBB-'  and 'BBB', respectively.
 The Outlooks are Stable. The issue ratings on Bulgaria's senior
 unsecured foreign and local currency bonds have been affirmed
at 'BBB-' and 'BBB', respectively. The Country Ceiling has been
affirmed at 'BBB+' and the Short-term foreign currency IDR at
'F3'.

Bulgaria's ratings are currently supported by the sovereign's
lower level of domestic and external indebtedness relative to
its 'BBB' range peers, as well as a sufficient level of foreign
reserves, which provide stability to its existing currency board
 regime. These factors offset large structural weaknesses in the
 economy, which constrain higher trend growth. Bulgaria's
ratings are constrained by structural bottlenecks, which
continue to constrain stronger growth rates, and limits
Bulgaria's convergence progress with western European standards
of living, the rating agency said.

The Stable Outlook reflects Fitch's assessment that upside and
downside risks to the rating are currently balanced. The main
risk factors that, individually or collectively, could trigger
negative rating action are: re-emergence of instability in the
banking sector, which may increase pressure on government fiscal
 finances and economic growth; further fiscal slippage that
threatens the long-term sustainability of public finances; a
negative economic shock that causes a downward revision in
medium-term GDP.

The main factors that, individually, or collectively, could
trigger positive rating action include: credible fiscal
consolidation that supports the long-term sustainability of
public debt dynamics; stronger trend GDP growth and progressive
convergence towards average EU income levels.