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June 28, 2022
BUSINESS

Daianu: Standard & Poor’s will upgrade Romania’s rating by year-end

The decision made by the financial rating agency Fitch to upgrade Romania’s outlook will boost foreign investors’ confidence in the Romanian economy, believe the economists interviewed by Econtext.ro. Furthermore, the economic experts estimate that Standard & Poor’s (S&P), too, will upgrade the country rating this year, or in the first half of 2012 at latest. “The decision made by Fitch shows that Romania continues its financial consolidation, while curbing its current account deficit and budget deficit. I hope Standard & Poor’s too will improve our rating and take us off the <<Junk>> category by the end of 2011. The improvement operated by Fitch will help Romania issue bonds,” believes former Finance minister Daniel Daianu. The situation of Greece however remains a threat that might negate the benefits of the Fitch decision to upgrade the rating of Romania. If things stay tense in Greece, they will also have an impact upon the credit default swap (CDS) and, implicitly, upon the cost at which we will find financing abroad,” Daianu explained.
“The decision made by Fitch shows that Romania will exit the crisis healthier than when it entered. On a short term, we will see an impact upon the RON. However, the appreciation of the RON will not last very long, and would have a bad effect for exports,” said Lucian Anghel, the chief economist of Banca Comerciala Romana (BCR).

Cristian Parvan, the secretary general of the Businessmen’s Association of Romania (AOAR) believes the Fitch decision allows the state and companies to take loans in better conditions.

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