Standard & Poor (S&P) rating agency has confirmed Sofia’s credit rating, Sofia city council said on Friday.
Sofia’s local currency long-term rating is BB (stable), and the foreign currency long-term rating of unsecured debt is BB- (stable).
The council said S&P’s rating reflected an overall improvement in Bulgaria, a result of political stability, economic reform, projected GDP growth and the stabilization of the lev after it was pegged to the Deutsche mark and later to the euro.
S&P upgraded Sofia’s rating on November 8, at the same time as the country’s credit rating.
The rating agency said at the time that the stable outlook was based on expectations that Sofia would continue to take advantage of the city’s levels of income, employment and investment, which were high compared the rest of the country.
Sofia Mayor Stefan Sofianski disclosed plans to apply for a new investment loan next year after settling the 50-million euro Eurobond loan in June 2002.
The money of the new loan will be used for improving public transport.
Two weeks ago, S&P also upgraded the ratings of three Bulgarian banks: the Municipal Bank, United Bulgarian Bank and Bulbank.
The ratings primarily reflected positive developments in the Bulgarian banking system in recent years, S&P said.
Although state banks dominated the sector in the mid-1990s, privatization of the two largest banks, Bulbank and UBB, was completed in 2000, with foreign investors acquiring them. The influx of foreign banks has opened up the system to competition and helped the modernization process.
The ratings on Bulbank reflect its 85.2 per cent ownership by UniCredito Italiano. Bulbank’s strong liquidity and capitalization and currently low-risk asset profile relative to its emerging-market bank peers were also positive rating factors.
Unicredito is bringing additional expertise to many areas of Bulbank’s strategy and operations. Unicredito is faced with a challenge – transforming the bank into a modern commercial operation, instead of the bank’s historic roots as a government body, S&P said.
The ratings on UBB reflect its 89.9 per cent ownership by the National Bank of Greece. Good commercial positions and strong franchise, liquidity, and capitalization were also positive factors.
The rating of the Municipal Bank reflected its close relationship with its majority owner, the City of Sofia, its strong position in the municipal sector in Bulgaria, and adequate liquidity, S&P said.
Sofia’s local currency long-term rating is BB (stable), and the foreign currency long-term rating of unsecured debt is BB- (stable).
The council said S&P’s rating reflected an overall improvement in Bulgaria, a result of political stability, economic reform, projected GDP growth and the stabilization of the lev after it was pegged to the Deutsche mark and later to the euro.
S&P upgraded Sofia’s rating on November 8, at the same time as the country’s credit rating.
The rating agency said at the time that the stable outlook was based on expectations that Sofia would continue to take advantage of the city’s levels of income, employment and investment, which were high compared the rest of the country.
Sofia Mayor Stefan Sofianski disclosed plans to apply for a new investment loan next year after settling the 50-million euro Eurobond loan in June 2002.
The money of the new loan will be used for improving public transport.
Two weeks ago, S&P also upgraded the ratings of three Bulgarian banks: the Municipal Bank, United Bulgarian Bank and Bulbank.
The ratings primarily reflected positive developments in the Bulgarian banking system in recent years, S&P said.
Although state banks dominated the sector in the mid-1990s, privatization of the two largest banks, Bulbank and UBB, was completed in 2000, with foreign investors acquiring them. The influx of foreign banks has opened up the system to competition and helped the modernization process.
The ratings on Bulbank reflect its 85.2 per cent ownership by UniCredito Italiano. Bulbank’s strong liquidity and capitalization and currently low-risk asset profile relative to its emerging-market bank peers were also positive rating factors.
Unicredito is bringing additional expertise to many areas of Bulbank’s strategy and operations. Unicredito is faced with a challenge – transforming the bank into a modern commercial operation, instead of the bank’s historic roots as a government body, S&P said.
The ratings on UBB reflect its 89.9 per cent ownership by the National Bank of Greece. Good commercial positions and strong franchise, liquidity, and capitalization were also positive factors.
The rating of the Municipal Bank reflected its close relationship with its majority owner, the City of Sofia, its strong position in the municipal sector in Bulgaria, and adequate liquidity, S&P said.
