Moody's Investors Service (Moody's) maintained the BBB- / A-3 rating for Romania's long-term and short-term government debt in foreign currency and local currency, thus reconfirming the country rating with a stable outlook, a release of the Public Finance Ministry (MFP) sent to AGERPRES on Saturday informed."Moody's announcement shows the fact that our country has a solid economic growth, that will maintain in the coming years. This growth outlook and the moderate level of public debt are reasons for the investors to have confidence in the Romanian economy, " Finance Minister Eugen Teodorovici stated.
According to the quoted source, among the strengths behind the rating agency's decision are: the solid medium-term growth potential in the context of the existing challenges to continue structural reforms, a moderate fiscal strength, supported by a low debt burden and favorable debt affordability metrics, despite risks posed by a pro-cyclical fiscal policy, a moderate institutional capacity, that reflects the progress made by Romania since joining the European Union, as well as the moderate exposure to external risks.
Moody's forecasts, quoted in the MFP release, show, in the next two years, an increase of Romania's real GDP by 4 percent in 2018 and 3.5 percent in 2019, respectively. It is also expected for the dynamics of investments to improve, as private consumption continues to be the main driver of growth, while the contribution of net export is expected to remain negative.
Furthermore, the rating agency mentions that the factors which can lead to an improvement of the country rating are related to fiscal and external measures, accompanied by greater predictability and credibility.
Moreover, the enforcement of structural reforms aimed at supporting the business environment and solving the infrastructure deficit will have a positive impact on the long-term growth, the relevant ministry informs.