S&P cuts Plovdiv outlook to negative

Standard & Poor's said it revised its outlook on the Bulgarian City of Plovdiv to negative from stable.

The BB+ long-term issuer rating was affirmed.

"The rating actions reflect its view that Plovdiv's budgetary performance will remain weak and its debt will keep rising, owing to the city's intention to continue investing heavily in infrastructure," said credit analyst Felix Ejgel.

High capital investments weigh on Plovdiv's budgetary performance, the agency noted. In addition, economic contraction has resulted in lower-than-planned privatization receipts and property transfer tax revenues, S&P said.

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