17 Oct 2025
The international agency assesses Stara Zagora as a financially stable and well-managed municipality maintaining a balanced budget
The international rating agency S&P Global Ratings has confirmed the long-term credit rating of the city of Stara Zagora at “BBB-” with a stable outlook. The decision was made on October 10, 2025.
The rating reflects the city’s stable economic growth, strong tax collection, solid budget management, high liquidity buffers, and low debt burden. Combined, these factors allow the municipality to pursue an ambitious investment program despite pressures on expenditures.
According to the analysis, operational surpluses are expected to continue, and post-capital expenditure deficits are projected to remain below 5% of total revenues through 2027. Key challenges for the “City of the Linden Trees” include the economic transition from coal to green energy, the need for workforce retraining, and demographic decline.
S&P notes that an upgrade in the rating is possible if revenue growth is sustained, financing sources are better diversified, and the liquidity profile improves.
Conversely, a downgrade could occur if the operational balance deteriorates or if debt rises above expected levels.
The Municipality of Stara Zagora is investing in industrial zones and developing physical infrastructure to attract investors and companies active in the renewable energy sector. Examples include battery production for electric vehicles and the construction of solar panel manufacturing facilities. The municipality also actively leverages European and national investment programs, including the European Just Transition Fund, which provides nearly EUR 1 billion for the region.
S&P assesses Stara Zagora as a financially stable and well-managed municipality that maintains a balanced budget despite structural challenges and the upcoming economic transition.
