Standard & Poor's Global Ratings Friday affirmed its 'BB+' long-term issuer credit rating on Sofia. The outlook remains positive.
The credit rating agency expects that the city of Sofia will continue exhibiting solid operating performance and high cash levels, but that nominal debt will increase slightly in 2018-2019 as larger capital projects accelerate. "The rating on Sofia reflects our expectation that, over 2018-2019, the city will continue posting robust operating balances averaging 9 per cent and its liquidity will remain exceptional, even with continued large capital expenditures," S&P says. It expects the city's liquidity coverage ratio to remain sound over the next 12 months.
The rating agency notes that the capital's economy remains stronger than the national average. It also says: "Economic activity is concentrated in the services sector (85 per cent of Sofia's GDP), and the city has a clear strategy based on promoting itself as an investment destination and a digital capital."