Standard&Poor's Ratings Services said it raised Bulgaria's short-term foreign and local currency sovereign credit ratings to 'A-2' from 'A-3', based on a methodology change made on May 15.
"The upgrade does not reflect an improvement in our view of the country's short-term creditworthiness," the agency said in a statement on Friday.
S&P also affirmed the BBB long-term foreign and local currency sovereign credit ratings on Bulgaria with stable outlook.
"The stable outlook reflects our view that Bulgaria's authorities will continue to maintain a favorable fiscal position on the back of ongoing budgetary consolidation and structural reforms, despite the likely slowdown in economic growth prospects and against its gross external debt position," the agency added.
The rating agency highlighted the government's strong track record of appropriate fiscal policy and low gross and net general government debt, but also took into consideration the Balkan country's relatively low gross domestic product per capita and still-large, albeit correcting, stock of external imbalances as well as related risks, given the adverse economic backdrop.