The Fitch rating agency has confirmed Bulgaria’s BBB rating and assigned it a positive outlook. It wrote in its newest report on the country that the rating was based on “sound external and public finances, credible policy framework aimed towards gradual accession to euro membership and stable growth prospects.” But it warned that Bulgaria continues to face unfavorable demographics and lower income levels compared with the current ‘BBB’ median. “On the upside, continued large inflows of EU funds (including over the next EU budget cycle) will serve as a cushion against adverse economic developments,” Fitch analysts wrote. Bulgaria is still expected to post current account surpluses averaging 3.3 percent of GDP in 2019-2021. The country is on track to join the eurozone, but this is unlikely to take place before 2023.
