S&P Affirms Bulgaria’s Ratings

International agency S&P Global Ratings has affirmed Bulgaria’s sovereign credit ratings at BBB/A-2 for both long- and short-term foreign and local currency, maintaining a positive outlook. The Bulgarian Finance Ministry announced the rating action on Saturday, CE Report quotes BTA

S&P highlights Bulgaria’s progress toward joining the euro area early next year, noting April’s 12-month average inflation at 2.7%, meeting the euro accession price stability criterion. Official assessments from the European Commission and European Central Bank are expected in June, with final membership decisions anticipated in July.

Despite some risks, Bulgaria’s economy remains resilient, driven by a strong services sector and limited direct trade exposure to the US. S&P credits the euro accession goal for Bulgaria’s disciplined fiscal management, targeting deficits around 3% of GDP and maintaining government debt below 30% through 2028.

S&P may raise Bulgaria’s ratings upon euro area membership, which would enhance capital market access and monetary policy effectiveness. Conversely, a stable outlook could be imposed if accession prospects diminish due to political or inflationary challenges.