site.btaStandard & Poor's Raises Bulgaria's Credit Ratings to 'BBB-/A-3'

Sofia, December 2 (BTA) - The Standard & Poor's Global Ratings agency has raised its long-term and short-term sovereign credit ratings on Bulgaria in foreign and local currency to 'BBB-/A-3' from 'BB+/B', the Finance Ministry said Saturday.

The higher credit ratings are the result of Bulgaria's solid external performance that has strengthened the country's credit metrics, with the economy now more export-driven and less leveraged than previously. Public financial management has been prudent, in deference to the currency board regime, the Standard & Poor's analysts conclude.

The international rating agency might take a positive rating action over the next 24 months in case of: strengthening of the economic recovery; further reductions in the Bulgarian banking sector's nonperforming loans; a buildup of more substantial fiscal buffers; or the Bulgarian lev being granted entrance to the Exchange Rate Mechanism (ERM) II, which would further bolster the credibility of Bulgaria's monetary framework.