Fitch reconfirms Romania at 'BBB-' Outlook Stable

 Fitch Ratings on Friday reconfirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook and the Short-Term Foreign-Currency IDR at 'F3', the Finance Ministry said in a press release.According to the source, the decision to reconfirm the sovereign rating and maintain the stable outlook is supported, according to the agency, by EU membership and related capital inflows that support income convergence, external finances, and macro stability, as well as the positive evolution of GDP per capita and of governance and human development indicators, which are above 'BBB' category peers."Fitch Ratings' decision reconfirms confidence in the measures adopted by the Romanian Government to ensure the sustainability of public finances. This is important because the financing terms and conditions, as well as the appetite of the investment community on the capital market, are strongly influenced in a positive manner by the maintenance of a recommended investment grade rating and a stable outlook. Romania is currently registering a historic level of public investment, largely supported by European funds, in areas vital for improving the quality of life of Romanians. However, it is an announcement that must be accompanied by a sense of responsibility to improve budgetary efficiency and fiscal consolidation in order to ensure the resilience of the economy," said Finance Minister Marcel Bolos, quoted in the press release.The strengths that have led to maintaining the rating and outlook are offset by the level of state budget and current account deficits relative to similarly rated sovereigns, the high level of fiscal rigidity and the net external debt position.In the agency's view, Romania's economy will grow by 2.5% in 2024, the considerable inflows of European funds, including the cohesion funds from the Multiannual Financial Framework (2021-2027) and the recovery and resilience funds will continue to support growth and investment in the medium term. Beyond stimulating direct demand, EU funds will also contribute to the growth potential of the economy, accelerating the catching-up to the EU average.