US-based credit ratings agency Fitch Ratings has upgraded its outlook on Bulgaria’s long-term credit from ’stable’ to ’positive’, affirming the country’s long-term foreign- and local-currency credit rating at ’BBB’ and the short-term foreign- and local-currency credit rating at ’F2’.

“Budget out-turns have over-performed, further strengthening Bulgaria’s fiscal and debt position compared with other countries. The estimated budget surplus in 2018 on an accrual basis appears to be higher compared with the previous forecast, which is the best performance in the last 20 years. In Fitch’s view, Bulgaria’s commitment to prudent fiscal policies limits the risks for the country,” Bulgaria’s ministry of finance said in a press release.

Fitch has identified different factors that may boost Bulgaria’s rating, including ongoing improvements in external and fiscal balances, the country’s progress in joining the eurozone and its favourable prospects for economic growth that could lead to a faster economic convergence with countries with similar credit ratings.

After slowing to 3.1 per cent in 2018, the ratings agency expects Bulgarian GDP to grow in 2019-2020, by an average of 3.3 per cent.