We project that Romania's economy will contract by 5.2% in real terms in 2020 and that the fiscal deficit will widen to 9.2% of GDP. In our base-case scenario, we expect that after the December parliamentary election, the incoming government will implement credible consolidation efforts to stabilize net government debt at below 60% of GDP. That said, Romania's complex political dynamics continue to obscure its future policy direction and the reliability of policy execution. We are therefore affirming our 'BBB-/A-3' sovereign credit ratings on Romania. The outlook is negative. On Dec. 4, 2020, S&P Global Ratings affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Romania. The outlook remains negative. The negative outlook is based
