LONDON (Standard&Poor's) Nov. 5, 2007--Standard&Poor's Rating Services said today it revised its outlook on the Republic of Romania to negative from stable. At the same time, the 'BBB-/A-3' foreign currency, the 'BBB/A-3' local currency sovereign credit ratings and the 'A-' transfer and convertibility assessment on the Republic of Romania were affirmed. The outlook revision reflects the government's limited policy response to Romania's rapidly growing external imbalances, against the background of increasingly difficult global credit conditions. Fiscal and incomes policies are expansionary, and the upcoming elections are likely to stimulate further increases in current expenditure, reduce the overall quality of governance, and intensify inflationary pressures. "This will continue to hinder the government's capacity to respond to mounting
