Standard&Poor's (S&P), the first major rating agency that downgraded Romania in the autumn of 2008, announces it may upgrade the rating if the government maintains the momentum of its current structural reforms, ensures fiscal prudence and maintains stability in the financial sector.
The chance of a rating upgrade is a good thing given the international context where debts and deficits have become a sensitive issue since the outbreak of the sovereign debt crisis in Europe.
"If the government maintains the momentum of its current structural reforms, building a sustained track record of fiscal prudence and maintaining stability in the financial sector, we could raise the ratings," says Marko Mrsnik, Standard&Poor's Sovereign Ratings director in the latest report of the rating agency on Romania published on April 20, 2011.
Romania's rating is currently BBĂ, with a stable outlook. The latest modification was the upgrade of the rating outlook from "negative" to "stable" in March 2010. As a result of the financial crisis, the agency suddenly downgraded Romania's rating from BBB- to BBĂ with a negative outlook on October 27, 2008, thus moving Romania back into the so-called speculative-grade territory. Anything below BBB- means speculative grade rating.
A potential change of the rating would mean two steps taken, because before the rating upgrade, the outlook usually changes, too, in this case from stable to positive.
Standard&Poor's (S&P), the first major rating agency that downgraded Romania in the autumn of 2008, announces it may upgrade the rating if the government maintains the momentum of its current structural reforms, ensures fiscal prudence and maintains stability in the financial sector.
The chance of a rating upgrade is a good thing given the international context where debts and deficits have become a sensitive issue sinc
