16 C
Bucharest
October 28, 2020
ECONOMY FINANCE&BANKING

JCRA improves Romania’s rating to BBB/BBB+

JCRA improves Romania’s rating to BBB/BBB+

Japan’s Credit Rating Agency (JCRA) announced its decision to improve Romania’s country rating for long-term forex- and RON-denominated debt, from BBB-/BBB to BBB/BBB+, with stable outlook, the Romanian Finance Ministry informs.

“The rating agency’s decision confirms the developments, the Romanian economy’s outlook and, very importantly, the fact that budget deficit targets can be attained in the context of fiscal relaxation measures, bearing in mind the significant economic growth and revenue collection estimates. Against the backdrop of appreciations that concern financial stability, the rating agency says it will monitor the evolution of the legislative initiative on debt discharge,” Finance Minister Anca Dragu stated.

According to the aforementioned communiqué, the agency’s decision to improve the country rating reflects the progress made at the level of the financial system, particularly the lowering of the bad loans rate within the banking system, the budget deficit remaining below the 3 percent threshold in 2016 against the backdrop of fiscal relaxation, the consolidation of Romania’s external position, the sustainable economic growth outlook, as well as the public debt’s low level.

JCAR estimates that Romania’s economy will grow by around 4 per cent in 2016 and 2017, the country being the third largest economy in Central and Eastern Europe, with a GDP of approximately EUR 160 bln in 2015. At the same time, for the same year, it notes the low level of the current account deficit, 1.1 percent of GDP, and the maintenance of stable foreign capital flows through FDI and European grants.

In January, Fitch ratings agency reconfirmed the rating of Romania’s long-term public debt, forex- and RON-denominated, at BBB-/BBB, with stable outlook. Prior to that, in December 2015, Moody’s ratings agency improved the rating outlook from stable to positive and reconfirmed its Baa3 (investment grade) rating. Romania has a BBB- rating from Standard&Poor’s.

 

Related posts

Eurostat: Romania registers lowest gap between salaries of men and women in management positions

Nine O' Clock

KPMG in Romania appoints three new partners

NINE O'CLOCK

“Cities of Tomorrow” conference, organized by the Romanian-German Chamber of Commerce and Industry (AHK Romania). Dragos Anastasiu: Public policies at central level have nationalist-populist tendencies. Ambassador Cord Meier-Klodt: Eight cities in Romania generate over half of GDP. AHK Romania’s General Manager: We want to contribute to Romania’s competitiveness, friendlier business environment

NINE O'CLOCK