site.btaStandard & Poor's Confirms Sofia's Investment Rating

The international rating agency Standard & Poor's (S&P Global Ratings) on Friday confirmed Sofia's long-term credit rating at "BBB" with a stable outlook. According to S&P, the Bulgarian capital has sufficient financial buffers to absorb the constraints related to the military conflict in Ukraine, the press centre of the Sofia Municipality said. The agency expects the central government to help the municipalities by compensating the rising gas prices.

The rating agency believes that the Bulgarian capital will continue to maintain low deficits by financing capital accounts from EU funds, liquidity reserves and limited new debt.

"We expect Sofia to continue to report solid financial results and to have stable liquidity coverage," the agency said in its assessment, cited by the Municipality. The capital's rating also depends on Bulgaria's, as the city cannot have a higher rating than the state," S&P points out.

"Sofia's very strong fiscal performance during the COVID-19 pandemic has created sufficient financial headroom to withstand pressure from reduced GDP growth prospects and rising energy prices," the agency added. 

"Although national GDP per capita lags behind the European average, Sofia has a significantly higher average gross income per capita than the national average. On the positive side, Sofia's financial management generally maintains high operational efficiency," S&P further said, quoted by the Sofia Municipality.