BTA. Moody's Affirms Bulgaria’s Baa1 Ratings, Maintains Stable Outlook

YEREVAN, FEBRUARY 4, ARMENPRESS.Moody's Investors Service has affirmed the Government of Bulgaria's long-term issuer and senior unsecured ratings at Baa1, outlook stable, the Bulgarian Finance Ministry reported. According to the international rating agency, Bulgaria could still meet its 2024 target for adoption of the euro, but the baseline scenario is that the adoption will likely be delayed at least until 2025.

Moody’s expectation is that the European energy crisis will not materially weaken Bulgaria's economic and fiscal strength.

“The Bulgarian Government has proven effective in strengthening alternative gas supply routes via Greece and Turkiye as well as alternative supplies of natural gas, most notably from Azerbaijan,” the report reads.

Moody's estimates that the Bulgarian economy grew by 2.7% of GDP in 2022. While the rate of growth is expected to slow to 1.4% of GDP in 2023, Moody's expects that this will be among the more robust growth rates among European sovereigns this year.

According to the rating agency, inflation will be high but declining towards 6.0% by the end of 2023, from 14.3% at the end of 2022.