S&P maintains Romania’s rating
Romania keeps its investment grade rating (long-term "BBB-"), but with a negative outlook, reflecting fragile trust
Daniela Budu, 25.07.2025, 14:00
The financial rating agency Standard & Poor’s maintains Romania’s rating in the investment grade category (“BBB-” long term), but also the negative outlook after the first package of fiscal measures adopted by the government. It appreciates that the Bucharest Executive has quickly adopted the set of measures for the financial consolidation of the state, this being Romania’s most important attempt at fiscal correction since the global crisis of 2008. At the same time, it warns that the government’s plans to reduce the deficit are hampered by a difficult economic environment and political risks. S&P experts say they expect the reform measures to test the cohesion of the governing coalition over the next two years.
Finance Minister Alexandru Nazare says the rating is a new sign of trust from international markets. He believes that the agency has thus validated the fact that budgetary discipline is not only necessary but also possible, and that it is essential to see the next reform packages through to completion. In fact, the assessments of international rating agencies influence the interest rates at which the state borrows and the trust of foreign investors.
The president of the co-ruling Save Romania Union (USR), Dominic Fritz, has stated that maintaining the country’s rating is only a “breathing space” for Romania, not a guarantee. The rating remains unchanged, but the outlook is still negative, according to a statement released by USR. We recall that in the middle of this month, Prime Minister Ilie Bolojan and the Minister of Finance presented to Standard & Poor’s representatives the main fiscal and budgetary measures adopted by the Government and those in preparation, aimed at streamlining the activity of state-owned companies and ensuring a more rigorous management of public resources. They gave assurances at the time that the Executive would continue the process of gradual fiscal consolidation and maintain an open dialogue with institutional partners and rating agencies.
The financial rating agency Fitch has also announced that the implementation of the latest consolidation package announced by the authorities in Bucharest will be reflected in its new revised fiscal forecasts, to be published on August 15. According to Fitch, significant fiscal consolidation will put pressure on economic growth, and implementation risks cannot be ruled out. However, the government has stated that it is determined to balance public finances and implement responsible economic policies.
For its part, Moody’s rating agency considers the fiscal measures taken by the Bucharest government to be ‘an important step’ towards balancing the budget. However, Moody’s representatives warn that it is imperative to meet all the targets in the program, and that access to funds from the National Recovery and Resilience Plan and the European Union budget is essential. (MI)
