S&P, Fitch and Scope Ratings raised Bulgaria’s credit rating following the decision to join the eurozone
SOFIA – The international rating agencies S&P Global Ratings and Fitch Ratings have raised Bulgaria’s long-term credit rating in foreign currency by one notch to “BBB+” with a stable outlook, which is the highest rating within the investment-grade category, the Bulgarian Ministry of Finance reports. The leading factor for the upgrade within the extraordinary credit actions from both agencies is the official decision of the Council of the European Union for Bulgaria’s accession to the Eurozone, effective from January 1, 2026, the financial ministry indicates.
The rating agency Scope Ratings has also raised Bulgaria’s long-term credit rating – to ‘A-‘ from ‘BBB+’ in local and foreign currency, the ministry further reported. According to the agency, joining the Eurozone will strengthen Bulgaria’s credit profile through improvements in various rating-related areas, including by eliminating currency risk, enhancing the flexibility of monetary policy, and facilitating access to the developed capital markets of the Eurozone.
In the rationale for the rating upgrade, S&P Global Ratings notes that Bulgaria will benefit from the reliable monetary policy of the European Central Bank (ECB) and the developed capital markets of the monetary union, while currency risk will decrease significantly.
Fitch views the adoption of the euro as positive for the rating, as joining the Eurozone will grant the state debt reserve currency status, strengthen the monetary policy framework, reduce transaction costs, eliminate currency exchange risk for businesses and households, and open up additional opportunities for external financing. Bulgarian banks will also have access to the ECB’s liquidity facilities.
The Prime Minister of Bulgaria, Rosen Zhelyazkov, commented to journalists in Rome that there is a direct link between the Council of the European Union’s decision for Bulgaria’s accession to the Eurozone on January 1, 2026, and the improved ratings from the rating agencies. International rating agencies say that the country is much better financially protected in terms of belonging to the currency union, the Prime Minister added.
In a post on the social media of the Bulgarian Council of Ministers, quoting Prime Minister Zhelyazkov, it is stated that Bulgaria’s membership in the common currency union is a prerequisite for economic development and stability, for a better business environment and a better standard of living for citizens. Bulgaria’s long-term credit rating is now of high investment grade, which the country has never had before, the Prime Minister further noted.
Bulgaria will officially adopt the euro and will become the 21st member of the Eurozone from January 1, 2026 – 19 years after our country’s accession to the European Union. The EU Council unanimously voted on July 8 on the final decisions related to the adoption of the euro in Bulgaria. With this, the procedure was completed, after earlier that same day the European Parliament also approved by a large majority the report on the introduction of the single European currency by our country. (11-12.07.2025)
