The reaffirmation of Romania's investment grade rating by Fitch Ratings shows that external partners have confidence in the Government's ability to make the necessary decisions for Romania's stability and the priority remains continuing the process of budgetary discipline and fiscal adjustment, Finance Minister Alexandru Nazare said.
The reaffirmation of the investment grade rating by Fitch Ratings, despite the challenges, shows that our external partners have confidence in this Government's ability to make the decisions required for Romania's stability. We took over a deficit that was reaching record levels and adopted the necessary decisions to reduce it, while also stabilising public debt. This Government's priority remains the continuation of this process of budgetary discipline and fiscal adjustment in order to stay on the medium-term trajectory agreed with the European Commission and to relaunch the economy on a sustainable basis, within the limits of the existing fiscal space. All these actions will lead to lower financing costs, with the medium-term objective being an improvement in the country's rating,' Finance Minister Alexandru Nazare underlined in a press release.
Fitch Ratings on Friday affirmed Romania's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'BBB-' with a Negative Outlook.
Romania's 'BBB-' rating is supported by EU membership and related capital inflows that have supported income convergence and access to external financing. GDP per capita and governance are above 'BBB' category peers. These strengths are balanced against the large and persistent twin budget and current account deficits, increasing public debt, political polarisation and fairly high net external debt, the credit rating agency said in a press release.
The Ministry of Finance says it will continue to monitor budget execution with the utmost rigour in order to ensure the sustainability of public finances and compliance with the commitments undertaken.
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