Prospect of euro area entry drives the maintenance of the Positive Outlook, with robust economic growth and public finances further supporting the rating. Governance challenges, vulnerability to shocks and adverse demographics are constraints.

Expected progress on euro area accession, supported by new government, and sustained macro-economic stability drive the Outlook revision. Vulnerability to shocks, governance challenges and adverse demographics are constraints.

The inclusion of the Bulgarian lev in ERM II, joining the Banking Union, low public debt alongside strengthened external and banking sectors are strengths. Vulnerability to shocks, governance challenges and electoral uncertainty are ratings constraints.