Bulgaria's credit rating soars after Eurozone accession announcement

Bulgaria, located in Southeast Europe, has recently received a significant boost to its economic outlook following the announcement of its official accession to the Eurozone, set for January 1, 2026. The Council of the European Union voted unanimously on July 8, 2025, to approve this historic step for the country, which will be the 21st member of the Eurozone. The European Parliament also approved the introduction of the single European currency in a resounding vote earlier that day. The Bulgarian Ministry of Finance announced that two major international rating agencies, S&P Global Ratings and Fitch Ratings, have raised Bulgaria's long-term credit rating in foreign currency by one notch to 'BBB+' with a stable outlook. This rating, which falls within the high investment-grade category, reflects the significant improvements in Bulgaria's credit profile due to the Eurozone accession. The Prime Minister of Bulgaria, Rosen Zhelyazkov, highlighted the importance of this upgrade, noting that the country's financial stability will be enhanced by joining the monetary union. The upgrade is largely attributed to the anticipated benefits from being part of the Eurozone, which will help eliminate currency risk, improve the flexibility of monetary policy, and provide better access to capital markets. S&P Global Ratings cited the reliability of the European Central Bank’s monetary policy as a crucial factor that will bolster Bulgaria's financial standing. Fitch Ratings echoed this sentiment, stating that adopting the euro will improve the financial landscape for businesses and households alike, reducing transaction costs and providing expanded access to external financing. Furthermore, this historic achievement marks a milestone for Bulgaria, which joined the European Union 19 years ago. The Prime Minister emphasized that the successful transition into the Eurozone will lead to a more stable economic environment, better opportunities for businesses, and ultimately a higher standard of living for Bulgarians. The connection between the EU Council’s decision and the upgrades of Bulgaria’s credit ratings reflects a newfound confidence from investment agencies in the country’s economic direction and future growth, making this a pivotal moment in Bulgaria's financial history.