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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Romanian president rejects justice minister’s request to dismiss head of anti-corruption body

Romanian President Klaus Iohannis said on April 16 he is rejecting a request from the justice minister to dismiss the head of the National Anticorruption Directorate (DNA), Laura Codruta Kovesi. ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Romania’s Restart Energy raised €30mn via ICO

Romanian electricity and gas supplier Restart Energy raised €30mn in cryptocurrencies by issuing 400mn MWAT tokens in an Initial Cryptocurrency Issue (OCO) aimed at financing a blockchain-based ... more

Most Read

  1. Putin and Trump trying to walk back Syria strike and sanctions tensions
    1 day ago
  2. Turkey’s Erdogan warns “nobody can discipline us with exchange rates”
    7 days ago
  3. What’s the cost of US sanctions on Russia?
    2 days ago
  4. Leaked document shows EU’s initially hardline approach to Gazprom
    7 days ago
  5. Romania entrepreneur aims to put home-grown UAV defence technology industry on the map
    3 days ago
  1. Fears raised of US conditioning F-35s sale on Turkey cancelling S-400 deal with Russia
    23 days ago
  2. COMMENT: Whisper it – ‘Erdonomics’ could be driving Turkey to a meltdown
    10 days ago
  3. KRUK REPORT: Nadia Savchenko, Ukraine’s fallen hero
    27 days ago
  4. Turkey’s Erdogan warns “nobody can discipline us with exchange rates”
    7 days ago
  5. Russia's Rusal warns of default due to new US sanctions, En+ trading on LSE suspended
    10 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss