On Friday, April 15, Standard & Poor’s Global Ratings maintained Romania’s government debt’s sovereign rating of BBB- / A-3 for long-term and short-term debt in local currency and currency. The rating agency also confirmed the outlook’s stability. The rating came after Fitch last week confirmed Romania’s BBB- rating.
Romania’s grade is bolstered by its EU membership and full access to foreign capital markets, according to S&P. In addition, the likelihood of absorbing a considerable amount of European cash, as well as the country’s energy dependence on Russia’s natural gas and oil, minimise the risks posed by the conflict in Ukraine, according to Valahia News.
The Romanian government is implementing effective measures to counter the effects of the energy crisis and the war in Ukraine. We are not the only ones to say it, says Standard & Poor’s, which confirms the country rating and the high degree of security for investors, maintaining a stable perspective.
Adrian Caciu, Romania’s Minister of Finance
According to Standard & Poor, sustained economic development combined with a reduction in the government fiscal deficit could lead to the consolidation of Romania’s productive capacity and, as a result, to a possible action to raise our country’s sovereign rating.
While the government presents all of these international rating agency evaluations positively, Romania’s constant growing inflation, which is already in double digits, is a problem, and preventative measures are implemented too slowly for the vulnerable populace to benefit from them. Foreign institutions are also more cautious when assessing Romania’s growth potential this year, placing it at around 1.9%, down from an enthusiastic 5% at the start of the year.
As a result, ordinary Romanians must brace themselves for one of the most difficult economic periods in recent memory despite the government’s confidence.