The financial rating agency Moody's Ratings confirmed on Friday Romania's rating at "Baa3" but changed the outlook associated with the rating to "negative" from "stable," according to a press release from Moody's.The decision to change the outlook to negative reflects the risk that, in the absence of additional fiscal consolidation measures, Romania's fiscal strength could significantly weaken in the coming years, the rating agency said.According to Moody's baseline scenario, Romania's fiscal deficit will remain at a high level in 2025, at 7.7% of GDP, and will improve only gradually thereafter, which will increase the government debt burden to 68.5% of GDP by 2028. In the absence of significant improvement in the fiscal outlook, there is a risk that Romania's credit profile could deteriorate significantly compared to that of other countries with a "Baa3" rating.According to the rating agency, the confirmation of the "Baa3" rating for Romania reflects the size and moderate growth potential of the economy. On the other hand, Romania's credit profile is constrained by its high vulnerability to a risk event, given its increased exposure to geopolitical risks due to its proximity to the war in Ukraine.Based on the policies announced so far by the government, Moody's forecasts that the fiscal deficit will decrease from the 8.7% of GDP level reached in 2024 but will remain high at 7.7% of GDP in 2025 and will improve only gradually thereafter. Combined with a downward revision of Romania's growth forecasts, this will quickly push up the government debt burden to 59.3% of GDP by the end of 2025, and to 62.7% of GDP by the end of 2026, up from 48.9% of GDP at the end of 2023.The rating agency specifies that the rating outlook could be returned to "stable" if the indicators related to the government debt burden and debt affordability deteriorate significantly less than the current estimates. However, most likely, this would require the adoption of additional fiscal consolidation measures and improvement in spending discipline.
Private equity fund CVC and Therme Group, the developer, owner, and operator of wellbeing destinations, have partnered for Therme Horizon, a new holding company comprising Therme Erding in Germany and Therme Bucharest in Romania. In a deal valued at over EUR 1 billion, CVC and Therme Group will become equal partners in Therme Horizon. CVC will also co-invest in the development of Therme […]
As Cambridge School of Bucharest (CSB) celebrated its 30th anniversary in 2024, it reflects on the significant strides the school has made in providing world-class education. From its early beginnings to the thriving institution it is today, CSB has always focused on nurturing the intellectual, emotional, and social growth of its students. The school’s evolution […]
Schrack Technik Romania, a subsidiary of the Austrian group Schrack Technik GmbH, a manufacturer and distributor of electrical installations and equipment, has finalized a EUR 15 million logistics center in Domnești, near Bucharest. The center has an area of 3,500 sqm of offices + 5,500 sqm, a storage capacity of 5,000 pallets, a stock of […]
President Nicușor Dan will meet the parliamentary parties on Thursday, June 19, for consultations on nominating the next PM, the Presidential Administration announced. The Social Democratic Party (PSD), the National Liberal Party (PNL), the Save Romania Union (USR), and the Democratic Alliance of Hungarians in Romania (UDMR) have been negotiating a governing program and the […]
President Nicușor Dan will meet the parliamentary parties on Thursday, June 19, for consultations on nominating the next PM, the Presidential Administration announced. The Social Democratic Party (PSD), the National Liberal Party (PNL), the Save Romania Union (USR), and the Democratic Alliance of Hungarians in Romania (UDMR) have been negotiating a governing program and the […]
Two young Romanian energy specialists, one from Transelectrica, the operator of the national power system, and the other from the National Energy Regulatory Authority, were designated as members of the continental expert commission investigating the causes of the historic total blackout that affected Spain and Portugal. The blackout took place on April 28, 2025 and […]
