Moody's: Bulgarian Bank System Outlook Remains Negative
2011-06-02 17:42:11
The outlook for the Bulgarian bank system stays negative, confirmed a report by the Moody's rating agency published Wednesday.
The reasons behind that assessment are chiefly related to what Moody's calls "an unconvincing economic recovery and week operative environment."
The report also points out expectations for an increase in bad credits and the high levels of dependency on foreign financing.
The Moody's document outlines the fundamentals of credit conditions for the next 12 to 18 months.
Among the other negative factors contributing are a low credit growth and high level of unemployment.
On the other hand, the latest report from the Bulgarian National Bank states that the country's banking system remains "stable" and that corporate lending is on the rise.