Fitch Ratings confirmed on Saturday Romania’s long-term foreign and local currency issuer default ratings (IDR) at ‘BBB-‘, with stable outlooks.
The agency warned on a growing budget deficit and economy overheating.
The issue ratings on Romania’s senior unsecured foreign and local currency bonds have also been affirmed at ‘BBB-‘/F3, while the country ceiling has been affirmed at ‘BBB+’ and the short-term foreign currency IDR at ‘F3’, the rating agency said in a release.
“Romania is at risk of re-entering the EU Excessive Deficit Procedure this year, having only exited it in 2013,” the rating agency warned.
Fitch noted that Romania’s structural budget deficit is set to widen to 3.9% of GDP in 2017, according to the European Commission, which would represent an expansion of 3.3% of GDP in two years, contrary to national and EU fiscal rules.
Fitch said there is a risk of the economy overheating, although inflation and bank credit growth are currently subdued.