Romania Outlook Stable

Fitch Ratings has affirmed Romania’s long-term foreign- and local-currency issuer default ratings at ‘BBB-’ with stable outlooks, Business Review reported. The issue ratings on Romania’s senior unsecured foreign–and local-currency bonds have also been affirmed at ‘BBB-’/F3. The country ceiling has been affirmed at ‘BBB+’ and the short-term foreign- and local-currency IDRs at ‘F3’. It said, Romania’s investment grade rating is supported by its still moderate level of public debt, stable banking sector, GDP per capita and governance indicators that are in line with ‘BBB’ range medians. However, the rating is facing an increase in downside risks owing to a substantial pro-cyclical fiscal loosening and rapid increase in wages in excess of productivity growth, which pose risks to macroeconomic stability.