Standard & Poor's affirms Sofia’s credit rating
The international credit rating agency “Standard & Poor’s” S&P GlobalRatings affirmed Sofia’s long-term rating at BB+ with a positive outlook.
In its rating report, the Agency noted that it expected the Sofia Municipality to continue exhibiting solid operating performance. The city has stable balances and good financial liquidity, despite the major capital investments in recent years. Standard & Poor’s expect that the liquidity ratio remains good in the next 12 months. A positive factor, as indicated by the Agency, is that the cash flows, operated by the Sofia Municipality exceeds 3 times the instalments for the repayment of its debt, on an annual basis.
Sofia has a clear strategy to promote itself as an investment destination and digital capital, which has an effect on the good condition of the city, remarked S&P GlobalRatings.
Rating Agency’s positive rating assigned to Sofia is a recognition of the good work of the municipal administration, the financial stability and high level of own revenues of the Sofia Municipality. The rating agency believes that the legally granted authority of the Municipality to increase its revenues can be used even more adequately.
Sofia’s economy is stronger than the average for Bulgaria, but as a rule, the Municipality cannot have a higher credit rating than that of the country. Therefore Sofia’s long-term rating remains at ВВ+ with a positive outlook, the Rating Agency explained.