S&P upholds Bulgaria`s BBB/A-3 ratings21.12.2010

Standard and Poor`s confirmed on Friday its BBB/A-3 sovereign credit ratings with a "stable" outlook on Bulgaria.
"We believe that the fiscal policy of the Bulgarian government, the low level of state debt and solid growth prospects over the medium term support this rating," the agency said.
According to the analysts, the country has good prospects for growth, especially if they are backed by an improvement in EU funds absorption and by other benefits brought by the EU membership.
After the steep decline of 5% in economy in 2009, Bulgaria is likely to register a modest growth of 0.5% this year mainly due to the rebound in exports, S&P added.
The agency also considers that the government addresses adequately public finances, with budget shortfall likely to stay below 3% of the country`s gross domestic product (GDP) in 2011. The positive development is expected to provide for a state debt of below 20% of GDP next year, up from 13.8% in 2008.
Furthermore, S&P notes that Bulgaria`s banking system is well-capitalised, boasting a capital adequacy ratio of 18%.

Source: Dnevnik

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