International rating agency Standard & Poor’s reconfirmed Romania’s sovereign rating at BBB- for the long and short term debts in local and hard currency, as well as its stable outlook. Romania’s rating is underpinned by its status as a member of the European Union and robust access to funding from international capital markets. Also, the risks generated by the conflict in Ukraine are attenuated by the prospect of absorbing a significant amount of EU funds under the EU Multiannual Financial Framework and the Recovery and Resilience Facility and the country’s low energy dependence on imports of natural gas and oil from Russia. The report of Standard & Poor’s comes one week after another major rating agency, Fitch Ratings, affirmed Romania’s sovereign rating to BBB- with negative outlook, the lowest investment grade rating.
The government in Bucharest is taking efficient measures to counteract the effects of the energy crisis and the war in Ukraine, said the finance minister Adrian Câciu in response to the assessment of rating agencies. He added that according to Standard & Poor’s, sustainable economic growth together with a reduction in the government’s fiscal deficit may lead to a consolidation of the productive capacity of the Romanian economy and, implicitly, to an improvement of the country’s sovereign rating. The sign of trust sent by the government to investors is reconfirmed by the recent evaluations of Standard & Poor’s and Fitch Ratings, the government said in a statement on Saturday. Romania is safe for investment and it provides stability and opportunities – this is the message the government says it has constantly conveyed to the business community throughout this complicated period, a message now confirmed by international financial institutions.
The prospect of growth is underpinned by the unprecedented access to national and European funds pumped into the country’s economy in all strategic areas, industry, agriculture, energy, the environment and digitalisation, as well as by the government’s development policies, the government also said in its statement. It also notes that its economic and social package entitled “Support for Romania” and worth some 3.4 billion euros, 60% of which for investments, adds to the tens of billions of euros of national and European funds aimed at the Romanian economy. The government says it has begun to implement this combination of economic and social measures and will continue to work at the same pace, emphasising that a dynamic economy is the safest path to development, new and better paid jobs and quality public services for the people. (Ştefan Stoica, Radio Romania International)
