Nicușor Dan, after Fitch maintained the Sovereign rating of Romania at BBB minus, with a negative perspective: good news
Nicușor Dan Photo Raa / Nurphoto / Shutterstock Editorial / Profimedia
President Nicușor Dan on Monday cataloged on Monday as a “good news” the decision announced on Friday of the International Fix Agency Fitch that reconfirmed the Sovereign rating of Romania at the BBB-/ F3 level for the long and short-term debt, maintaining the negative perspective.
“I remember that the Standard and Poor's rating agency also confirmed on July 24, the rating of Romania BBB- with a negative perspective. Reaffirm Romania's seriousness to foreign investors and financial markets,” Dan wrote on Facebook.
The president claims that our country will be considered a trusted partner with the attainment of assumed targets to join the Organization for Economic Cooperation and Development.
“The budget for the year 2026 and the fulfillment, one by one, of the objectives assumed to access the OECD at the end of 2026 will strengthen the confidence in Romania,” Dan said.
Romania has officially submitted its candidacy for the accession to the OECD on the occasion of previous extension exercises, respectively in April 2004 and November 2012, and has renewed it annually, according to the Ministry of Foreign Affairs.
The membership status of the OECD is a strong reliable indicator for partners, with positive consequences regarding the stimulation of capital flows and foreign direct investments in Romania.
What Fitch says
The International Fix Fix Agency Fitch reconfirmed the Sovereign rating of Romania at the BBB-/ F3 level for long-term debt on Friday, however, maintaining the negative perspective.
The rating agency said that the rating “BBB-” of Romania is supported by the EU belonging and the related capital entries, but also that the budgetary and current account deficits, the rapid growth of the public debt, the political polarization and the high external debt are the mill stones that hang by the economy.
“An ambitious package of fiscal consolidation was announced and rapidly legislated in July, based on the common work of the President and the Government. However, the socio-economic cost of fiscal adjustment, the tensions within the government coalition and the strong support for the far-right folk parties, the PNL, the PNL, remain in the PNL. The center-right of Bolojan, and the PSD, the center-left party-have agreed that Bolojan will make room for a new prime minister from PSD in 2027, which could lead to political uncertainty, ”saidfitch.
According to the Agency, there are also factors that could lead to rating degradation:
- Non -implementation of additional fiscal consolidation measures that would lead to medium -term public debt stabilization
- Negative propagation effects on the financing and external liquidity from increased political uncertainty or from fiscal fluctuations and persistently interest.
“The Fitch decision, in a sensitive fiscal and budgetary context, reconfirms the confidence in the measures and plans of the Government of Romania,” the minister Alexandru Nazare appreciated.
Prime Minister Ilie Bolojan said that the only solution to solve the difficult financial situation of the country is to adopt the package 2 measures and other packages, stressing that things cannot be corrected “if they are transferred to one area or another”, and that if this happens, the country will return to the same difficult situation.
