FITCH AFFIRMS BULGARIA AT 'BBB-BBB'; OUTLOOK STABLE
Fitch Ratings has affirmed Bulgaria's Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB-' and its local currency IDR at ‘BBB‘, with stable outlook. The Short-term foreign currency IDR has been affirmed at ‘F3' and the Country Ceiling at ‘BBB+'. The affirmation of Bulgaria's sovereign ratings reflects Bulgaria's strong fiscal position and the Stable Outlook reflects Fitch's assessment that upside and downside risks to the rating are currently balanced. According to Fitch, strong public finances are the key underpinning for Bulgaria's investment-grade rating.
The report also states that the Bulgarian sovereign possesses significant buffers in the form of a Fiscal Reserve Account equivalent to 6.3% of GDP at end-November 2013, and foreign-exchange reserves (FXR) worth 3x base money (M0). Fitch forecasts that the GGD will be little changed in 2014 from an estimated 1.8% of GDP in 2013, before falling slightly in 2015.
