site.btaAllianz Trade Reports Sensitive Risk of Late Payments, Bad Receivables in 11 Sectors of Bulgarian Economy

Sensitive risk of late payments and bad receivables in 11 sectors of the monitored 18 sectors of the Bulgarian economy shows the regular rating report of the credit risk company Allianz Trade, the company said on Monday.

The monitoring covers 18 sectors in 70 countries using Allianz Trade's methodology with four main criteria - demand, profitability, liquidity and business environment. Sectors are indexed from green for low, through yellow for moderate, orange for sensitive to red for high risk of late payments and bad debts, the company explained. The report is produced on a quarterly basis.

According to the report for Bulgaria, the sectors Automotive, Automotive parts, Construction, Transport, Chemical industry, Textile, Metallurgy, Machinery and equipment, Transport equipment, Household goods and equipment, as well as  Trade fall into the orange zone.

The energy sector is the only one in Bulgaria where improvement is reported compared to last year, as it moves to the yellow zone. With the same assessment in Bulgaria remain the sectors Electronics, Paper manufacturing, Computer technology and telecom, Pharmaceutical industry, Agriculture and food industry. The only sector in the country that falls in the green zone continues to be Software and IT services.

At the country level, Allianz Trade keeps Bulgaria's rating unchanged at B2 which indicates moderate risk of late payments and bad debts when conducting transactions with companies operating in the country, the statement said. 

At the global level, Allianz Trade's assessment of the risk of late payments and bad debts by sector shows that the most worrying situation is in the construction sector, which alone falls into the red zone.

"Although in Bulgaria we do not have a sector that falls in the red zone, the situation requires increased attention from the business, especially for companies that have foreign trade relations. The significant challenges at the macroeconomic level and the slowdown in growth in Europe, where many of the partners of Bulgarian companies are located, is a warning signal for them to pay even more attention to the collection of their receivables," explained Allianz Trade Country Manager for Bulgaria Kamelia Popova.