S&P Affirms Romania Rating At BB+/B; Cuts Local Currency Ratings

S&P’s move to level Romania’s local and foreign currency ratings follows the implementation of a revised methodology and assumptions for sovereign ratings, the statement noted.

“Under our revised methodology, the gap between the local- and foreign-currency ratings on most of our rated sovereigns is narrowing. This is because we believe governments are likely to have fewer incentives to differentiate between their local- and foreign-currency debt in the event of a debt restructuring, given the increasing globalization of markets,” S&P said.

S&P’s ratings on Romania are supported by the country’s improving fundamentals, namely a declining fiscal deficit, a narrowing current account deficit and rebalancing economic growth, the agency said.