Fitch revises Romania’s outlook to negative
Fitch Ratings has revised Romania’s outlook to negative from stable, while affirming its long-term foreign and local currency issuer default ratings (IDR) at ‘BBB’.
The trigger behind the revision is the substantial worsening in Romania’s public finances expected in the short-term as the outbreak and spread of the COVID-19 pandemic aggravates an already weak fiscal position, the ratings company said on April 17.
The combination of a sharp economic contraction and a rise in spending will cause a material widening of the public deficit and a sharp rise in debt in 2020.
Although Fitch says it expects the economy to recover in 2021, uncertainty regarding the scope and length of the pandemic, combined with poor fiscal management in recent years, creates significant challenges in consolidating public finances over the medium term.
Standard & Poor’s credit rating for Romania stands at "BBB-" with a negative outlook. Moody’s credit rating for Romania is at "Baa3" with a stable outlook.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.