Economics

Bulgaria Cut to Junk by S&P as Bank Weakness Strains Budget

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Bulgaria’s sovereign credit rating was cut to junk by Standard & Poor’s, which cited weakness in the banking system that’s prompted government support.

The rating was lowered to BB+ from BBB-, putting the Balkan nation on par with Indonesia and French Polynesia. S&P assigned a stable outlook. Fitch Ratings and Moody’s Investors Service both rate Bulgaria at investment grade.