Fitch affirms Romania’s BBB-/stable sovereign rating

By bne IntelliNews March 10, 2014

International rating agency Fitch has confirmed the BBB/stable rating for Romania’s long-term foreign currency debt. For the local currency debt, the rating was also affirmed at BBB/stable.

The country ceiling has been affirmed at BBB+ and the short-term foreign currency issuer default rating at F3.

Stronger than expected GDP growth and a steeper than expected drop in the country’s external debt could trigger an upgrade, the rating agency comments. On the opposite, fiscal slippage or slowing structural reforms as a result of political instability are seen as threats to the sovereign rating. External economic or political shocks that would erode the country’s buffers are also seen as putting its rating at risk.

Fitch assumes that the government will continue efforts towards attaining its medium-term objective of a structural budget deficit of 1% of GDP. Globally, the rating agency expects i. the unwinding of extraordinary global monetary stimulus to proceed in a broadly orderly fashion and ii. the key macroeconomic imbalances within the currency union to slowly unwound.

Related Articles

Romania’s government to invest €1bn in gas/coal-fired power units with Israeli partner

Romania’s government is evaluating a proposal made by Israeli state-owned Israel Electric Corporation for four new power generation units of 100MW each at power plant CET Mintia, an investment ... more

Romania’s Dedeman drops plans to invest in Moldova citing excessive red tape

Romania's largest DIY company Dedeman has given up plans to invest €20mn in neighbouring Moldova due to excessive red tape, local media reported on October 20. Dedeman, controlled by the Paval ... more

Romania's Transgaz to open branch in Moldova to speed up pipeline construction

Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more

Dismiss