Romanian Govt Targets Upgraded Country Rating In Due Time

"Romania is currently having a problem with the country’s rating, and because we have a 5.2% deficit in 2008, the lending options are reduced and very expensive. Everybody is expecting to see very clear and firm measures from a stable Government, on the one hand, and a government economically committed to take the current necessary measures. Thus, we aim to upgrade the country’s rating, in a reasonable period of time, which will equally enable a better financing," Boc said.

The Government has the will and commitment to keep a budget deficit at 2% of GDP in 2009, to "regain foreign creditwothiness," Boc said.

Moody’s included Romania mid-December among the “High Vigilance Countries,” namely the countries most vulnerable to the effects of the current economic crisis, which are more likely to face pressures on their ratings.

Premierul Ucrainei: Kievul este hotărât să continue cooperarea cu SUA după suspendarea ajutorului

15:54

Serviciul rus de informații acuză UE că blochează candidatura lui Călin Georgescu la președinția României

15:53

Also, ratings agency Fitch has lowered mid-November the sovereign ratings on Romania by two notches, citing vulnerabilities in emerging markets, spurred by the global crisis and the countries’ high current account deficits.

Thus, Romania’s long-term foreign currency IDR downgraded to ‘BB+’ Negative Outlook from ‘BBB’ Negative Outlook, the long-term local currency IDR downgraded to ‘BBB-‘ (BBB minus) Negative Outlook from ‘BBB+’ Negative Outlook, the short-term foreign currency IDR downgraded to ‘B’ from ‘F3’, wile the Country Ceiling downgraded to ‘BBB’ from ‘A-‘ (A minus).

Standard & Poor’s Ratings Services downgraded Romania end-October to investment grade, with a negative outlook. Thus, S&P lowered its long- and short-term foreign currency sovereign credit ratings on Romania to ‘BB+/B’ from ‘BBB-/A-3’, and its local currency long-term rating to ‘BBB-‘ from ‘BBB’, fueled by the high lending rate risks on international markets. The investment grade category requires an S&P rating of at least "BBB-".