Strategies and Cheese » rating http://www.ivosokolov.com Ivo Sokolov's Blog on Economics, Business, Politics and IT Mon, 17 May 2010 15:01:51 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 S&P upgrades Bulgaria’s outlook to stable http://www.ivosokolov.com/2009/12/sp-upgrades-bulgarias-outlook-to-stable/ http://www.ivosokolov.com/2009/12/sp-upgrades-bulgarias-outlook-to-stable/#comments Wed, 02 Dec 2009 17:08:21 +0000 Ivo Sokolov http://www.ivosokolov.com/?p=81 Ok here’s some good news. Yesterday Standard & Poor’s confirmed Bulgaria’s BBB foreign currency long term debt rating but upgraded its outlook to stable.

The measures taken by the government to cut expenses and increase revenues as well as next year’s budget were taken into account for the revision of the rating outlook. The government plans a budget deficit of 0,7% but many analysts seem to conclude that a deficit of 1,2-1,3% for 2010 is more realistic.

Parallel to the rating revisions, it’s interesting to follow the CDS on Buglaria’s sovereign debt. I just looked it up in my Bloomberg terminal at work and made a chart:

For anyone interested, below are the FC/LT debt ratings that S&P has assigned to the Republic of Bulgaria since 1998 (source: Bloomberg):

Rating Watch Date Effective
BBB 10/30/2008
BBB+ *- 10/23/2008
BBB+   10/26/2006
BBB   10/27/2005
BBB-   6/24/2004
BB+   5/22/2003
BB   10/ 7/2002
BB-   11/ 7/2001
B+   5/10/2000
B   11/23/1998
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