Moody's affirming Romania's long-term issuer and senior unsecured ratings is indicative of the fact that the country is on a credible fiscal consolidation path, yet this trajectory is not without challenges, and maintaining the confidence of investors and international partners depends on the consistent continuation of fiscal consolidation, Finance Minister Alexandru Nazare said in reaction to the announcement by the leading credit rating agency.
"Moody's affirming Romania's rating shows once more that the country is on a credible fiscal consolidation path, despite a complex domestic and international context. This trajectory is not without challenges, and maintaining the confidence of investors and international partners depends on the consistency wherewith we will continue fiscal consolidation. Therefore, we continue to work for upholding the stability of public finances and for reducing the deficit, in order to strengthen the resilience of the Romanian economy and provide predictability to citizens and the business environment. The fiscal adjustment that we have begun is not just a measure of budgetary balance, but a solid foundation for Romania's sustainable economic growth," Nazare wrote on Facebook on Saturday.
Moody's agency affirmed on Friday Romania's long-term issuer and senior unsecured ratings at Baa3, yet cautioned of the significant risks to the successful implementation of the country's fiscal consolidation programme.
The Finance Ministry emphasizes that, according to Moody's, the affirmation of the rating is supported by the solid growth potential of the economy and the high income levels compared to countries in the same rating category. However, Romania's credit profile is constrained by a high susceptibility to event risk, determined by its high exposure to geopolitical risk due to the proximity of the war in Ukraine.
Moody's decision to maintain the negative outlook reflects the significant implementation risks related to the Romanian government's ambitious fiscal consolidation programme.
"Moody's decision is yet another confirmation that the Romanian government has taken the right measures to stabilize the fiscal-budgetary trajectory of our country and gives us confidence that we can overcome this difficult period together with our internal and external partners. (...) We remain firmly committed to ensuring the stability of public finances and the gradual reduction of the deficit, in order to strengthen the resilience of the Romanian economy, but also for laying the foundations for a healthy economic growth," Nazare noted.
According to Moody's, the outlook could be improved from negative to stable if the government debt burden and debt sustainability indicators evolve in line with, or more favorably than the agency's current estimates. This would require the full and effective implementation of the fiscal consolidation programme adopted in July and September 2025, with the fiscal consolidation process expected to continue beyond 2026.
Comentează