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 S&P decreases Bulgaria's rating to 'BBB', still in the investment grade category

de Radu Rizea     HotNews.ro
Joi, 30 octombrie 2008, 20:56 English | Regional Europe

The financial evaluation agency Standard & Poor's (S&P) decreased on Thursday the rating for Bulgaria, from BBB+ to BBB, with a negative perspective, invoking the external imbalance and the slowdown of the economic growth, NewsIn informs. Despite the rating decrease, Bulgaria remains in the investment grade sector, two steps above Romania.

"The rating decrease reflects our concern caused by Bulgaria's foreign vulnerabilities", said Marko Mrsnik, analyst with Standard & Poor's.

Analysts add that Romania and Bulgaria, along with the Baltic states, have some of the most vulnerable economies among the emerging countries, because of their dependence on foreign financing and current account deficit, above 20%.

During the first six months of the year, Bulgaria had a 7.1% economic growth. "Bulgaria entered the global crisis of credits, with all the symptoms of an overheating economy, which further increases the foreign financing flow decrease risk".

The direct foreign investments, which covered the entire current account deficit in 2007, are decreasing, mainly due to the slowdown in constructions and real estate.

Over 80% of the banks in Bulgaria are owned by European creditors. 






















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