The Japanese rating agency JCRA has confirmed the country rating for Romania (BBB/BBB+) for long-term debt in foreign currency and in domestic currency, with stable outlook, the Finance Ministry informs in a release posted on its website.
The document reads that Romania’s relatively stable economic situation and the low level of public debt represent issues that confirm the country rating. The agency forecasts for 2019 and 2020 an economic growth of about 3%, given the slowdown of economic growth in the European Union, Romania’s main economic partner, but estimates an investment revival in the context of higher absorption rate of European funds.
JCRA mentions Romania’s efforts and the firm commitment to keep the budget deficit at 3% over medium term.
Progress in the banking system is mentioned, in terms of profitability and in reducing the levels of non-performing loans and of loans in foreign currency. Although an increase of the current account deficit was registered in 2018 up to 4.5%, the agency underlines that its financing was made by stable capital flows, mainly by foreign direct investments and by European funds.
Fitch reconfirmed on May 11 the rating for Romania’s government debt at BBB-/F-3 with stable outlook for the long-term and for short-term debt in foreign currency and domestic currency.
In March, Standard & Poor’s reconfirmed the rating for the government debt at BBB-/A-3 for long-term and short-term debt in domestic currency and in foreign currency with stable outlook.