Fitch Revises Outlook on Bulgaria Ratings to Stable
Fitch Ratings said it has revised the outlook on Bulgaria's long-term foreign and local currency Issuer Default Ratings (IDR) to stable from positive.
The action, which saw the ratings outlook on the Czech Republic, Latvia and Lithuania also being revised to stable from positive, is prompted by the deterioration in the European economic and financial outlook, the ratings agency said in a statement.
The rating action follows the agency's review of European Union countries that had a Positive Outlook.
"Strong economic and financial linkages mean that countries in central and eastern Europe are being adversely affected by downward revisions to economic growth prospects and heightened financial stress in the eurozone," Ed Parker, managing director in the EMEA Sovereign group at Fitch, said in the statement.
Against this backdrop, Fitch said it believes the probability of upgrades in the next 12 months for Bulgaria, the Czech Republic, Latvia and Lithuania has receded and Stable Outlooks better capture the balance of risks.