Bulgaria’s credit rating upgraded by Fitch on euro adoption plan

Published 11/07/2025, 09:10
Bulgaria’s credit rating upgraded by Fitch on euro adoption plan

Investing.com -- Fitch Ratings has upgraded Bulgaria’s long-term foreign-currency issuer default rating to ’BBB+’ from ’BBB’ on Thursday, following the approval of Bulgaria’s euro adoption scheduled for January 2026.

The global ratings agency stated that euro zone membership will provide Bulgaria with reserve-currency status and strengthen its monetary policy framework.

Additional benefits include lower transaction costs, elimination of exchange-rate risks for corporate and household balance sheets, and access to new external funding opportunities.

"Bulgaria’s ratings are supported by its strong external and public finance balance sheets versus ’BBB’ peers and credible policy framework, underpinned by EU membership," Fitch said in a statement.

While acknowledging these positive factors, Fitch also highlighted several challenges facing the country.

These include low labor productivity, unfavorable demographics, and institutional constraints that have delayed the implementation of structural reforms.

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