Ratings agency Standard & Poor's has retained the sovereign rating of Bulgaria as BB+/B, with a stable perspective, the Finance Ministry has said.

Its value remans at a "junk" level, where the country has been since December 2014 due to the developments with Corporate Commercial Bank (Corpbank or KTB), the assistance provided to First Investment Bank, and the overall fiscal deterioration.

Restrictions to the rating include low GDP per capita and institutional weakness, according to S&P.

However, the agency also notes that the economic recovery gathered pace in 2016, with an improved situation on the labour market and a low budget deficit.

However, gains could be negatively impacted by political instability if the latter hampers recovery or looses the fiscal policy.

An increase in the credit rating is tied to the solution of governance problems which would step up GDP growth, a better fiscal situation, and a reduction in external debt levels.