Moody's affirms Romania's rating

The international rating agency Moody's has affirmed Romania's rating at the last step in the investment grade category, BBB-, but maintained its negative outlook.

The decision reflects the significant implementation risks related to the government's ambitious fiscal consolidation program, the agency said in a report.

According to the institution, the fiscal measures adopted by the government in July and September this year have significantly improved Romania's fiscal outlook compared to the agency's expectations. Moody's says that the consolidation measures adopted, namely the VAT increase, the freeze of public salaries and pensions, should reduce the budget deficit by over 3% of Gross Domestic Product in the next two years.

Translated by: Radu Matei