Standard & Poor’s Ratings Services on Friday affirmed its long and short-term foreign and local currency sovereign credit ratings on Romania at ‘BBB/A-3’, while the outlook is stable. Romania’s current rating is on par with Russia, Brazil and India, S&P said in a statement.
The rating agency quoted a forecast of average economic growth of 2.7 percent from this year through 2017, with gradual productivity gains lifting incomes.
The recovery in growth “should aid moderate further consolidation of government finances,” S&P analyst Aarti Sakhuja said in the statement. “The stable outlook balances the likelihood of fiscal and reform programs exceeding our expectations, against the possibility of external imbalances re-emerging.”
“While we do not expect the upcoming presidential elections to weigh on economic performance, we continue to view Romania’s governance framework as a ratings constraint,” S&P said.