Standard & Poor’s Upgrades Sofia’s Credit Rating from BB+ to BBB – with Stable Outlook
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The international rating agency Standard & Poor’s has affirmed its BBB- rating of Sofia Municipality. The S & P Global Ratings report noted that “there has been a significant rating event, namely the sale of the municipal share in Municipal Bank AD”. As a result, the assessment of the key factor “Contingent liabilities” has improved from “High” to “Moderate”, according to the agency’s document.
Sofia’s rating was raised in December last year from BB + to BBB- with a stable outlook and it is considered an investment rating. This will help to raise cheaper funds for the implementation of Sofia’s capital program. Standard & Poor’s acknowledges the good work of the municipal administration to maintain financial stability and a high level of own revenues of Sofia Municipality” said Doncho Barbalov, deputy mayor of Sofia.
According to preliminary data on Sofia’s budget implementation for 2018, the revenues in the municipal treasury in the first two months of the year rose by more than BGN 5.3 million, compared to the corresponding period a year ago. The total revenues for January and February, both tax and non-tax, amounted to BGN 87.2 million.
Revenues from property taxes amounted to BGN 46.6 million, including BGN 14.16 million from building tax and BGN 16.6 million from motor vehicle tax. This year the tax campaign for motor vehicles began on January 2, which had a positive impact on tax collection.
The tax on the acquisition of real estate has been increased by nearly BGN 4 million. In January and February, over BGN 14.3 million have been allocated to the municipal treasury under this item. According to statements of brokerage companies, the demand on the real estate market in Sofia is stable this year, which has a positive impact on the tax revenues when entering deals.
Currently, the household waste tax revenues total more than BGN 21 million, while the total non-tax revenues exceeded BGN 40.6 million for the first two months of the year.
