Bulgaria http://www.alacrastore.com/country-snapshot/Bulgaria Saturday, July 19, 2008 1:07:37 AM en AlacraStore RSS Builder 1.0 30 http://www.alacrastore.com/storecontent/spcred/658387spcred/658387normThe latest Summary from S&Pglobal7/8/2008 9:09:17 AM175Summary658387BulgariaElectric UtilitiesEmerging MarketsEurope, Middle East, AfricaGlobal IssuersUtilitiesElectricSummaryThe ratings on Bulgaria-based electricity utility Natsionalna Elektricheska Kompania EAD (NEK) reflect its partly debt-funded investment requirements, significant investment in a majority-owned nuclear generation company, exposure to Bulgaria's remaining transition-economy features, and the short operating track record of the company and of the national energy sector regulator. These factors are mitigated by NEK's strong business position, its strategic importance as a state-owned public provider and monopoly electricity grid operator in a growing market, the supportive regulatory environment, and the company's moderate leverage to date. NEK is in the process of evaluating final bids for a partner with 49% equity stake in the planned 2 gigawatt nuclear power plant Belene. So far, the company has awarded a €4 billion design, build,BGR55101010 551010 5510 55Natsionalna Elektricheska Kompania EAD382336EMERGINGEUROMIDAFRSUMMARYGLOBISSUTILElectricCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/587431spcred/587431normThe latest Full Report from S&Pglobalstructuredpubfin7/8/2008 2:57:54 AM400Full Report587431BulgariaDiversified BanksEurope, Middle East, AfricaEmerging MarketsGlobal IssuersStructured FinancePublic FinanceFinancial InstitutionsCorporationsAsset-Backed SecuritiesCollateralized Debt ObligationsAsset-Backed Commercial PaperCommercial MBSResidential MBSFull ReportSubstantial support from majority strategic shareholder Leading market position Adequate capital base for growth Stable funding base Operating in a banking system with still-high economic and industry risks, despite improvements Rising, although still very low, NPLs New entity untested as a combined entity The ratings on Bulgaria-based UniCredit Bulbank A.D.(Bulbank) benefit from a three-notch uplift from the stand-alone rating due to Bulbank''s strategic importance to, and on going support from, its parent Italy-based UniCredito Italiano SpA (UniCredito; A+/Stable/A-1). In addition, its leading position in the banking system and strong financial profile continue to support the rating. The ratings also encapsulate the still-high, although improving, economic and industry risks prevalent in Bulgaria, Bulbank's developing commercial profile, untested asset quality, and theBGR40101010 401010 4010 40UniCredit Bulbank A.D.338349EUROMIDAFREMERGING1007Z@BUFULLAUTLUXPOLDEUHRVITA90466R988849A5809YD4949YT9513RT951CK0605870727C1A97947D0807YD08082D0816CD0816HD0816BD494A0T9517RT95180T9518YT9519G0727C0D0756DD0816DD0816ED8491TT9517UT95189T9518BT9518RT951ABT951AT40101010 401010 4010 4040201040 402010 4020 40UniCredit SpABank Austria Creditanstalt AGZagrebacka banka ddBank Polska Kasa Opieki S.A.Bayerische Hypo- und Vereinsbank AGLocat SpAHVB Banque Luxembourg S.A.UniCredit Corporate Banking SpA110053111914316244319197327063354031361831374476EUROMIDAFRLATAMERICAPACUSAEMERGINGASIAUC@IMBACA@AVZABARA@CZPEO@PWHVM@GRLO@IM285763Z@IMGLOBISSSTRUCPUBFINFICORPABSCDOABCPCMBSRMBSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/541115spcred/541115normThe latest News from S&Pglobalstructuredpubfin7/8/2008 2:57:30 AM100News541115BulgariaDiversified BanksEurope, Middle East, AfricaEmerging MarketsGlobal IssuersStructured FinancePublic FinanceCorporationsFinancial InstitutionsAsset-Backed Commercial PaperAsset-Backed SecuritiesCollateralized Debt ObligationsCommercial MBSResidential MBSNewsLONDON (Standard&Poor's) Oct. 26, 2006--Standard&Poor's Ratings Services said today that it raised its long-term counterparty credit rating on Bulgaria-based Bulbank A.D. (Bulbank) to 'BBB+' from 'BBB'. At the same time, the 'A-2' short-term rating was affirmed. The outlook is stable. The rating action follows the foreign currency upgrade of the Republic of Bulgaria to 'BBB+/A-2' from 'BBB/A-3'. (For more information, see "Bulgaria's FC Ratings Raised To 'BBB+/A-2' On Fiscal Discipline And EU Entry; Outlook Stable," published on Oct. 26, 2006, on RatingsDirect.) The foreign currency upgrade of Bulgaria reflects the continued reduction in the public debt burden; robust growth prospects; and impending EU entry. Membership of the EU will underpin further economic and institutional modernization, andBGR40101010 401010 4010 40UniCredit Bulbank A.D.338349EUROMIDAFREMERGING1007Z@BUNEWSITADEUD0756DT9517RT95189T951ATD0807YD0816DD8491TT9513RD0816BD0816CD0816ED4949YT9517UT9518BT9518RT951AB0727C00727C190466RD08082D0816HD494A0T95180T9518YT9519GT951CK40101010 401010 4010 40UniCredit SpABayerische Hypo- und Vereinsbank AG110053327063ASIAPACUSAEMERGINGEUROMIDAFRLATAMERICAUC@IMHVM@GRGLOBISSSTRUCPUBFINCORPFIABCPABSCDOCMBSRMBSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/541116spcred/541116normThe latest Research Update from S&Pglobalstructuredpubfin7/8/2008 2:57:30 AM175Research Update541116BulgariaDiversified BanksEurope, Middle East, AfricaEmerging MarketsGlobal IssuersStructured FinancePublic FinanceCorporationsFinancial InstitutionsAsset-Backed Commercial PaperAsset-Backed SecuritiesCollateralized Debt ObligationsCommercial MBSResidential MBSResearch UpdateOn Oct. 26, 2006, Standard&Poor's Ratings Services raised its long-term counterparty credit rating on Bulgaria-based Bulbank A.D. (Bulbank) to 'BBB+' from 'BBB'. At the same time, the 'A-2' short-term rating was affirmed. The outlook is stable. The rating action follows the foreign currency upgrade of the Republic of Bulgaria to 'BBB+/A-2' from 'BBB/A-3'. (For more information, see "Bulgaria's FC Ratings Raised To 'BBB+/A-2' On Fiscal Discipline And EU Entry; Outlook Stable," published on Oct. 26, 2006, on RatingsDirect.) The foreign currency upgrade of Bulgaria reflects the continued reduction in the public debt burden; robust growth prospects; and impending EU entry. Membership of the EU will underpin further economic and institutional modernization, and pave the way for Eurozone membership,BGR40101010 401010 4010 40UniCredit Bulbank A.D.338349EUROMIDAFREMERGING1007Z@BURESUPDITADEUD494A0T9513RT9517RT95180T9519G0727C0D08082D0816BD0816CD4949YT9518BT9518RT9518YT951AB0727C1D0756DD0816HT951ATT951CK90466RD0807YD0816DD0816ED8491TT9517UT9518940101010 401010 4010 40UniCredit SpABayerische Hypo- und Vereinsbank AG110053327063EMERGINGUSAASIAEUROMIDAFRLATAMERICAPACUC@IMHVM@GRGLOBISSSTRUCPUBFINCORPFIABCPABSCDOCMBSRMBSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/482972spcred/482972normThe latest Research Update from S&Pglobalstructuredpubfin7/8/2008 2:57:01 AM175Research Update482972BulgariaDiversified BanksEurope, Middle East, AfricaEmerging MarketsGlobal IssuersStructured FinancePublic FinanceCorporationsFinancial InstitutionsAsset-Backed Commercial PaperAsset-Backed SecuritiesCommercial MBSResidential MBSCollateralized Debt ObligationsResearch UpdateOn Dec. 19, 2005, Standard&Poor's Ratings Services revised its outlook on Bulgaria-based Bulbank AD to positive from stable. At the same time, Standard&Poor's affirmed its 'BBB/A-2' counterparty credit and certificate of deposit ratings on the bank. The outlook revision follows a review of the strategic importance and integration of Bulbank to its majority foreign shareholder Italy-based UniCredito Italiano SpA (A+/Negative/A-1) under Standard&Poor's group rating methodology, and the future strengthening financial performance of Bulbank and its contribution to UniCredito's New Europe division. It also reflects the positive economic trends in the Bulgarian economy. The ratings on Bulbank are underpinned by its strategic importance to its parent, its solid position in the banking system, strong capitalizationBGR40101010 401010 4010 40UniCredit Bulbank A.D.338349EUROMIDAFREMERGING1007Z@BURESUPDITADEU90466RD0816HT95180T9518YT9519GT951CKD0816CD0816ET9513RT9517RT9518RD0807YD0816DD4949YD8491TT951AT0727C00727C1D0756DD08082D0816BD494A0T9517UT95189T9518BT951AB40101010 401010 4010 40UniCredit SpABayerische Hypo- und Vereinsbank AG110053327063LATAMERICAPACASIAEUROMIDAFRUSAEMERGINGUC@IMHVM@GRGLOBISSSTRUCPUBFINCORPFIABCPABSCMBSRMBSCDOCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/658210spcred/658210normThe latest Summary from S&Pglobal7/7/2008 3:42:00 PM175Summary658210BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceSummaryThe ratings on Bulgaria-based Municipal Bank A.D. reflect the bank's low financial flexibility and capitalization, modest domestic franchise, and poor profitability. They also encapsulate the above-average, although improving, economic and industry risks in the Republic of Bulgaria (BBB+/Stable/A-2). The bank's continuing operational relationship with, and expected support from, the City of Sofia (Sofia; BB+/Positive/--), its leading position in municipal financing, and good liquidity support the ratings. With assets of Bulgarian lev 1.0 billion (€0.5 billion) at the end of March 2008, Municipal Bank is a small Bulgarian bank with a market share of 1.5% by assets. It maintains a strong position in the niche segment of municipal financing by managing one-third of Bulgaria's municipality budgets, and serves some of theBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BUSUMMARYGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/658201spcred/658201normThe latest Full Report from S&Pglobal7/7/2008 1:24:00 PM400Full Report658201BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceFull ReportOperational relationship with, and expected support from, the City of Sofia Leading position in municipal financing Good liquidity Low financial flexibility and capitalization Modest domestic franchise Poor profitability The ratings on Bulgaria-based Municipal Bank A.D. reflect the bank's low financial flexibility and capitalization, modest domestic franchise, and poor profitability. They also encapsulate the above-average, although improving, economic and industry risks in the Republic of Bulgaria (BBB+/Stable/A-2). The bank's continuing operational relationship with, and expected support from, the City of Sofia (Sofia; BB+/Positive/--), its leading position in municipal financing, and good liquidity support the ratings. With assets of Bulgarian lev 1.0 billion (€0.5 billion) at the end of March 2008, Municipal Bank is a small Bulgarian bank with a market shareBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BUFULLBGRSofia (City of)329744EUROMIDAFREMERGING1002Z@BUGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/656347spcred/656347normThe latest Summary from S&Pglobal6/26/2008 3:28:52 PM175Summary656347BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceSummaryThe ratings on Bulgaria-based Municipal Bank A.D. reflect the bank's low financial flexibility and capitalization, modest domestic franchise, and poor profitability. They also encapsulate the above-average, although improving, economic and industry risks in the Republic of Bulgaria (BBB+/Stable/A-2). The bank's continuing operational relationship with, and expected support from, the City of Sofia (Sofia; BB+/Positive/--), its leading position in municipal financing, and good liquidity support the ratings. With assets of Bulgarian lev 1.0 billion (€0.5 billion) at the end of March 2008, Municipal Bank is a small Bulgarian bank with a market share of 1.5% by assets. It maintains a strong position in the niche segment of municipal financing by managing one-third of Bulgaria's municipality budgets, and serves some of theBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BUSUMMARYGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/656340spcred/656340normThe latest Full Report from S&Pglobal6/26/2008 1:14:53 PM400Full Report656340BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceFull ReportOperational relationship with, and expected support from, the City of Sofia Leading position in municipal financing Good liquidity Low financial flexibility and capitalization Modest domestic franchise Poor profitability The ratings on Bulgaria-based Municipal Bank A.D. reflect the bank's low financial flexibility and capitalization, modest domestic franchise, and poor profitability. They also encapsulate the above-average, although improving, economic and industry risks in the Republic of Bulgaria (BBB+/Stable/A-2). The bank's continuing operational relationship with, and expected support from, the City of Sofia (Sofia; BB+/Positive/--), its leading position in municipal financing, and good liquidity support the ratings. With assets of Bulgarian lev 1.0 billion (€0.5 billion) at the end of March 2008, Municipal Bank is a small Bulgarian bank with a market shareBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BUFULLBGRSofia (City of)329744EUROMIDAFREMERGING1002Z@BUGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/655491spcred/655491normThe latest Summary from S&Pglobal6/23/2008 8:20:24 AM175Summary655491BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersSovereignsSummaryThe ratings on Bulgaria reflect the government's strong track record of appropriate fiscal policy and rapidly declining gross debt, solid growth prospects in the medium term, a relatively strong external balance sheet, and the country's EU membership. Offsetting these strengths somewhat are a large current account deficit and high inflationary pressures--due among other things to wage pressures--which indicate an overheating economy. We expect firm policy support for the Currency Board Arrangement (CBA) to be maintained in the wake of high external imbalances and rising wage and inflationary pressures, with the 2008 budgetary surplus forecast at above 3% of GDP. This will contribute to a further decline in gross debt to around 14% of GDP by the end of the year.BGR12015KBulgaria (Republic of)322214EMERGINGEUROMIDAFR129225Z@BUSUMMARYGLOBISSSOVCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/655492spcred/655492normThe latest News from S&Pglobal6/23/2008 8:20:24 AM100News655492BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceNewsFRANKFURT (Standard&Poor's) June 23, 2008--Standard&Poor's Ratings Services said today it revised its outlook on Bulgaria-based Municipal Bank A.D. to stable from negative. At the same time, we affirmed the 'BB-' long-term and 'B' short-term counterparty credit ratings. "The outlook revision reflects the bank's continuing operational relationship with, and expected support from, its majority shareholder, the City of Sofia (BB+/Positive/--)," said Standard&Poor's credit analyst Annette Ess. We revised the outlook on the bank to negative from stable in January 2005 after Sofia announced its intention to sell all or part of its majority stake in the bank. Since then, very little progress has been made in privatizing the bank, and in our opinion, this isBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BUNEWSGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/655493spcred/655493normThe latest Research Update from S&Pglobal6/23/2008 8:20:24 AM175Research Update655493BulgariaRegional BanksEmerging MarketsEurope, Middle East, AfricaGlobal IssuersFinancial InstitutionsInternational Public FinanceResearch UpdateOn June 23, 2008, Standard&Poor's Ratings Services revised its outlook on Bulgaria-based Municipal Bank A.D. to stable from negative. At the same time, we affirmed the 'BB-' long-term and 'B' short-term counterparty credit ratings. The outlook revision reflects the bank's continuing operational relationship with, and expected support from, its majority shareholder, the City of Sofia (BB+/Positive/--). We revised the outlook on the bank to negative from stable in January 2005 after Sofia announced its intention to sell all or part of its majority stake in the bank. Since then, very little progress has been made in privatizing the bank, and in our opinion, this is unlikely to be completed within the next 12-24 months. Sofia intends to useBGR40101015 401010 4010 40Municipal Bank A.D.343479EMERGINGEUROMIDAFR1010Z@BURESUPDGLOBISSFIGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/655266spcred/655266normThe latest Full Report from S&Pglobal6/20/2008 3:38:00 PM400Full Report655266BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersSovereignsFull ReportStrong political consensus favors macroeconomic stability and supports the country's Currency Board Arrangement (CBA) Robust budgetary performance, rapidly declining debt, and low contingent liabilities Strong economic growth potential in the medium term, mainly driven by investment Low levels of prosperity Signs of an overheating economy, with high external imbalances that could delay EMU entry Structural reforms relating to health care, education, and public administration are still pending The ratings on Bulgaria reflect the government's strong track record of appropriate fiscal policy and rapidly declining gross debt, solid growth prospects in the medium term, a relatively strong external balance sheet, and the country's EU membership. Offsetting these strengths somewhat are a large current account deficit and high inflationary pressures--due among otherBGR12015KBulgaria (Republic of)322214EMERGINGEUROMIDAFR129225Z@BUFULLGLOBISSSOVCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/653106spcred/653106normThe latest Summary from S&Pglobal6/10/2008 10:25:08 AM175Summary653106BulgariaAutomotive RetailEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsEnergySummaryThe ratings on Bulgaria-based petroleum product distributor Petrol AD are constrained by the group's highly leveraged financial profile, narrow business and geographic focus, and weak corporate governance. They benefit from the group's position as a leading petroleum product distributor in Bulgaria, supported by an advantageous logistics network. Petrol recently agreed to sell 75 petrol stations and a fuel storage facility to Lukoil Bulgaria. We view the transaction as positive, as Lukoil Bulgaria has agreed as part of the transaction to drop a legal action against Petrol in which it sought Bulgarian lev (BGN) 89.5 million. Petrol is expected to receive a total of €240 million (BGN460 million) in respect of the transaction including a payment of BGN109.6 million (€56 million)BGR25504050 255040 2550 25Petrol AD401263EMERGINGEUROMIDAFRPET@BUSUMMARYGLOBISSCORPEnergyCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/652320spcred/652320normThe latest News from S&Pglobal6/5/2008 1:52:57 PM100News652320BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersSovereignsNewsLONDON (Standard&Poor's) June 5, 2008--Standard&Poor's Ratings Services today said it had affirmed its 'BBB+' long-term and 'A-2' short-term sovereign credit ratings on the Republic of Bulgaria. The outlook is stable. "The ratings on Bulgaria reflect the government's strong track record of appropriate fiscal policy and rapidly declining gross debt, solid growth prospects in the medium term, a relatively strong external balance sheet, and the country's EU membership," Standard&Poor's credit analyst Marko Mrsnik said. "Offsetting these strengths somewhat are a large current account deficit coupled with high inflationary pressures, due among other things to wage pressures, indicating an overheating economy." We expect firm policy support to the Currency Board Arrangement (CBA) to be maintained inBGR12015KBulgaria (Republic of)322214EMERGINGEUROMIDAFR129225Z@BUNEWSGLOBISSSOVCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/652321spcred/652321normThe latest Research Update from S&Pglobal6/5/2008 1:52:57 PM175Research Update652321BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersSovereignsResearch UpdateOn June 5, 2008, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term and 'A-2' short-term sovereign credit ratings on the Republic of Bulgaria. The outlook is stable. The 'A+' transfer and convertibility (T&C) assessment on Bulgaria was also affirmed. The ratings on Bulgaria reflect the government's strong track record of appropriate fiscal policy and rapidly declining gross debt, solid growth prospects in the medium term, a relatively strong external balance sheet, and the country's EU membership. Offsetting these strengths somewhat are a large current account deficit coupled with high inflationary pressures, due among other things to wage pressures, indicating an overheating economy. We expect firm policy support to the Currency Board Arrangement (CBA) to be maintained in the wakeBGR12015KBulgaria (Republic of)322214EMERGINGEUROMIDAFR129225Z@BURESUPDGLOBISSSOVCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/644059spcred/644059normThe latest Full Report from S&Pglobal4/22/2008 4:21:12 AM400Full Report644059BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersInternational Public FinanceFull ReportStrong revenue growth and sound operating performance Adequate liquidity, which will be gradually used for investments Expected inflow of EU funds Limited financial flexibility, as for all Bulgarian municipalities Uncertainty related to further progress on intergovernmental reform Deteriorating operating performance High infrastructure needs The rating on Plovdiv, the second-largest city in Bulgaria, is constrained by its limited financial flexibility, uncertainties over the progress of intergovernmental reforms in Bulgaria, the city's erratic and deteriorating operating performance, and high infrastructure needs. Nevertheless, Plovdiv's revenues are growing strongly, it has adequate liquidity, and an inflow of EU funds is likely to support more investments in the future. Bulgarian municipalities' financial flexibility is limited because a significant portion of local budgets are dedicated toBGRPlovdiv (City of)384216EMERGINGEUROMIDAFRFULLBGRStara Zagora (City of)384255EMERGINGEUROMIDAFRGLOBISSGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/644060spcred/644060normThe latest Summary from S&Pglobal4/22/2008 4:21:12 AM175Summary644060BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersInternational Public FinanceSummaryThe rating on Plovdiv, the second-largest city in Bulgaria, is constrained by its limited financial flexibility, uncertainties over the progress of intergovernmental reforms in Bulgaria, the city's erratic and deteriorating operating performance, and high infrastructure needs. Nevertheless, Plovdiv's revenues are growing strongly, it has adequate liquidity, and an inflow of EU funds is likely to support more investments in the future. Bulgarian municipalities' financial flexibility is limited because a significant portion of local budgets are dedicated to state-delegated tasks and financed by annually revised state transfers. The state controls the tax base and limits local tax rates. The municipalities also have little control over operating expenditures and face high infrastructure needs. Plovdiv aims to finance its investment program through borrowing,BGRPlovdiv (City of)384216EMERGINGEUROMIDAFRSUMMARYBGRStara Zagora (City of)384255EMERGINGEUROMIDAFRGLOBISSGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/641572spcred/641572normThe latest Full Report from S&P4/8/2008 10:34:02 AMFull Report400global641572BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersInternational Public FinanceFull ReportLow debt burden Low unemployment and solid economic base compared with other Bulgarian cities Modest contingent liabilities Consistently weak operating performance Limited financial flexibility Low predictability of the city's financial and debt indicators The rating on Bulgaria's sixth-largest city, Stara Zagora, is constrained by the city's consistently weak operating performance and limited financial flexibility in both revenue and expenditure. The rating is supported by the city's low unemployment and a relatively solid economic base compared with other Bulgarian cities. It is also supported by the low level of contingent liabilities because of the small number of municipal companies. Average income levels are high and unemployment has decreased sharply over the past few years, reaching a low 4.3% in mid-2007, fromBGRStara Zagora (City of)384255EMERGINGEUROMIDAFRFULLGLOBISSGOVSCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/641573spcred/641573normThe latest Summary from S&P4/8/2008 10:34:02 AMSummary175global641573BulgariaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersInternational Public FinanceSummaryThe rating on Bulgaria's sixth-largest city, Stara Zagora, is constrained by the city's consistently weak operating performance and limited financial flexibility in both revenue and expenditure. The rating is supported by the city's low unemployment and a relatively solid economic base compared with other Bulgarian cities. It is also supported by the low level of contingent liabilities because of the small number of municipal companies. Average income levels are high and unemployment has decreased sharply over the past few years, reaching a low 4.3% in mid-2007, from 15% in 2001. Improved access to the national road system, following the new construction of motorway junctions, and the potential opening of a former military airport to civilian traffic, will stimulate local businessBGRStara Zagora (City of)384255EMERGINGEUROMIDAFRSUMMARYGLOBISSGOVSCredit & Investment ResearchS&P Credit Research