Moody's Investors Service said that it completed a periodic review of the ratings of Bulgaria's government, which did not involve a rating committee.
The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of Bulgaria's ratings, and a comparison of the financial and operating profile to similarly rated peers, Moody's said in a statement last week.
The publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's also said in its statement:
"Bulgaria's Baa1 government bond rating reflects a "baa3" economic strength, balancing the relatively low size of the economy and lower wealth per capita (vs the EU average) and the clear improvement trend of the country's ranking in the World Economic Forum Global Competitiveness Index ; "baa1" institutions and governance strength, reflecting enhanced policy effectiveness confirmed by the country's accession to the Exchange Rate Mechanism (II) in July 2020 against credit challenges in the areas of fight against corruption; "aa3" fiscal strength, mirroring healthy public finances despite the coronavirus outbreak and a clear commitment to the stability of the currency board arrangement in order to join the euro area; and "ba" susceptibility to event risk assessment, driven by the country's banking system risks although recent developments point to higher liquidity and a stronger capitalization."