Romania remains poorly seen at the financial level. Moody's confirms negative rating. “Significant risks remain”
Moody's rating agency confirmed, on Friday, September 12, the country's country rating at the level “Baa3”. The perspective remains negative.
The perspective remains negative. Photo: Shutterstock
In the published report, the Agency emphasizes that the decision reflects the significant risks of implementing the ambitious fiscal consolidation program assumed by the government.
Moody's shows that the tax measures adopted by the Executive in July and September this year greatly improved the financial prospects of Romania, compared to the estimates in March, when the perspective had been modified from “Stable” in “Negative”.
According to the Agency, the package of consolidation measures exceeds 3% of GDP in 2025 and 2026, the main contributing factors being VAT increases, freezing salaries in the public sector and limiting pension index.
“However, the significant risks regarding the implementation, related to maintaining political support, ensuring the discipline of expenses and reaching the income growth targets, as well as the risk of the negative impact of the package will undermine the tax consolidation effort, remain.” warned Moody's.
At the end of August, Prime Minister Ilie Bolojan met with a delegation of the International Moody's rating agency, during the periodic visits that it makes in Romania. They discussed the measures adopted by the Government for balancing the budgetary situation, as well as aspects regarding political stability.
