Standard&Poor's Ratings Services (S&P) said it affirmed the BBB- long-term rating of Bulgaria’s second largest city, Plovdiv, and changed its outlook to stable from positive.
The stable outlook reflects the agency's expectation that Plovdiv will continue to report sound, albeit weaker, budgetary performance over the next two years, S&P said in a statement.
Plovdiv’s financial results in 2013 were stronger than budgeted due to its tight grip on spending, the agency added.
“The outlook revision reflects our view of Plovdiv's low but increasing debt, moderate budgetary flexibility, sound budgetary performance, and low contingent liabilities," S&P also said in the statement:."Our assessment is constrained by our view of the "consolidating but uneven" institutional framework for municipalities in Bulgaria, the limited long-term visibility in Plovdiv's financial management, and its relatively low wealth levels in an international comparison."
The ratings also take into account our view of Plovdiv's liquidity as "neutral" thanks to accumulated cash reserves.