7.9 C
May 9, 2021

Coface: Romania is in the riskiest situation from the last 10 years

Cristian Ionescu, chief of the rating agency Coface Romania, declared for Hotnews.ro that the scenario of a downward reevaluation of the country rating of Romania in December is increasingly credible. “Romania is in the riskiest situation from the last 10 years. If the political evolutions have a serious impact on the economic conditions, we shall think to a lowering of the country rating. Now it is B, but it will probably go to B minus. Below that is only Ukraine,” Coface chief said.

Asked what should happen in order to not lower the rating of Romania, Ionescu said that a set of measures through which the economy could improve would be very good news. “I bad sign would be the deterioration of the RON exchange rate. For the time being, BNR reserves look very well, although they are not unlimited. An international consortium of players who would like to throw down the RON would scatter them rather easily,” Ionescu stressed.

The country rating assigned by Coface (B, at this moment) reflects the payment behaviour of the companies and measures the average risk of payment incidents of the companies from a certain country. This differs from the ratings for sovereign risk granted by other rating agencies, such as Fitch, Moody’s or Standard & Poor’s.

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