Fitch S&P Upgrade Bulgaria Credit Rating on Eurozone Entry

International credit rating agencies Fitch Ratings and S&P Global Ratings have upgraded Bulgaria's long-term foreign currency credit rating to 'BBB+' with a stable outlook, the highest level in the upper-medium investment-grade category. This upgrade follows the European Council's formal approval of Bulgaria’s accession to the eurozone, effective January 1, 2026, which is seen as a major structural shift enhancing the country's economic and financial profile. Both agencies highlighted that eurozone membership will reduce currency risk, grant Bulgaria government debt reserve currency status, improve monetary policy credibility, and provide access to the European Central Bank’s liquidity mechanisms and deeper capital markets. S&P forecasts Bulgaria’s real GDP growth at 2.4% in 2025 and an average of 2.8% annually through 2028, driven mainly by private consumption supported by rising real wages and a tight labor market. Fitch noted challenges including low labor productivity, unfavorable demographics, institutional constraints, and political instability that have hindered reforms and EU fund absorption. Nevertheless, the overall outlook remains stable, with euro adoption expected to bolster Bulgaria's financial stability and external funding opportunities.