S&P Confirms Bulgaria's BBB Credit Rating

Bulgaria's Finance Minister, Simeon Djankov, is pleased by the analysis of the S&P credit rating agency. Photo by BGNES

The Standard and Poors (S&P) credit agency has confirmed Bulgaria's credit rating as BBB, Finance Minister, Simeon Djankov, informs Monday.

A BBB rating means adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

According to S&P, the cabinet maintains a stable budget macro frame, low budget deficit and low external debt, and there is political consensus to keep these parameters the same, Djankov pointed out.

The 2010 budget deficit will be below 4% from the Gross Domestic Product (GDP), ranking Bulgaria among the 5 EU countries with the lowest such deficit, the agency's analysis shows.

The external debt is 14.8% of the GDP – one of the lowest in the EU, just second after Estonia, which has a 9.9% external debt.

Djankov further explained that 52% from Bulgaria's GDP is for export, making the country's economy open, adding that in neighboring Romania this indicator stands at 25% and in Greece at 20%.

S&P confirms Bulgaria's cabinet proposition that small economies can counter the crisis through export.

The external trade deficit of Bulgaria is down from 24% from GDP just before the crisis to 9.6% in 2009, while in 2010 it can reach 2%, according to S&P.

The Minister further cited the agency concluding the cabinet of the ruling center-right Citizens for European Development of Bulgaria (GERB) party is applying a program to improve conditions for conducting business in the country, improve the absorption of EU funds, and reduce the effects of the crisis.

Djankov is to submit Tuesday with the Council of Ministers a 2011 project budget and the macro frame of the mid-term budget for 2012 and 2013.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!