Fitch Ratings has upgraded Romania’s Long-term foreign currency Issuer Default Rating (IDR) to ‘BBB-’ from ‘BB+’ and Long-term local currency IDR to ‘BBB’ from ‘BBB-’, according to a press release. The Outlooks are Stable. At the same time, the agency has upgraded the Country Ceiling to ‘BBB+’ from ‘BBB’ and the Short-term foreign currency IDR to ‘F3’ from ‘B’. “The upgrade reflects Romania’s progress in recovering from the effects of the financial crisis, evident in a return of GDP growth, a strong export performance, narrowing in the current account deficit and reduction in its budget deficit,” says Ed Parker, Head of EMEA Sovereigns at Fitch. Economic recovery started in early 2011, with GDP up 1.6 pc y-o-y, after one of the longest recessions in the EU. The recovery is driven by strong export growth, which has seen Romania gain market share, while the contraction in domestic demand has also contributed to the necessary correction in the current account deficit to 4.2 pc of GDP in 2010 from 11.6 pc in 2008. Critically, the budget deficit is now on a downward trajectory after painful fiscal measures equivalent to around 5 percentage points of GDP since 2008, and supported by the cyclical recovery.