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Ionut Dumitru: S&P's decision was inevitable, but it will not cause immediate effects in economy

Ratings agency Standard & Poor's decision to improve Romania's rating to 'BBB minus' from 'BB plus' was expected in the context in which macroeconomic indicators have improved significantly and S&P was the only relevant institution that was maintaining Romania at a rating in the 'junk' category [not recommended for investments], Ionut Dumitru, President of the Fiscal Council, told AGERPRES on Friday.

'It was an expected decision. It was inevitable for the S&P to improve Romania's rating since macroeconomic indicators have improved significantly since the financial ratings agency downgraded us to the junk category and the outlook was already positive,' said Ionut Dumitru.

In his opinion, Romania's rating should have been improved earlier, but S&P has been the most conservative relevant agency, as the other two major relevant agencies improved Romania's rating as early as last year.

Ionut Dumitru says there will not be immediate effects in Romania's economy as a result of this decision, but it is important to keep the direction of reforms and accelerate structural reforms.

As to Thursday's announcement of the National Institute of Statistics on the economic growth of 3.8% in Q1, Ionut Dumitru said the estimate of the institution that he represents was 4% and the forecast of 3.5% is maintained for end-year.

The financial ratings agency Standard & Poor's improved on Friday the rating assigned to Romania to 'BBB minus' from 'BB plus,' due to the economic growth and the Government's maintaining fiscal discipline.

Standard & Poor's was the only major ratings agency that maintained Romania in the 'junk' category, as Fitch Ratings and Moody's placed Romania, as early as last year, among the countries with low risk for investments.

 

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