Research Update: Romania 'BBB-/A-3' Ratings Affirmed; Rating Outlook Decision Under Appeal

The ratings on Romania continue to be supported by its moderate external private and public debt levels. In our opinion, Romania's institutional effectiveness remains weak, however, which constrains the ratings. Romania has requested to appeal S&P Global Ratings' rating outlook decision, and we have accepted this appeal. We are affirming our 'BBB-/A-3' ratings on Romania. The outlook is under appeal. On March 1, 2019, S&P Global Ratings affirmed its 'BBB-/A-3' foreign and local currency sovereign credit ratings on Romania. The outlook is under appeal. The ratings on Romania continue to be supported by its moderate external private and public debt levels, and still sound growth prospects. In our opinion, Romania's institutional effectiveness remains weak, however, which constrains the ratings. While

...Key rating factors Institutional assessment 4 Economic assessment 3 External assessment 3 Fiscal assessment: flexibility and performance 4 Fiscal assessment: debt burden 3 Monetary assessment 3 S&P Global Ratings' analysis of sovereign creditworthiness rests on its assessment and scoring of five key rating factors: (i) institutional assessment; (ii) economic assessment; (iii) external assessment; (iv) the average of fiscal flexibility and performance, and debt burden; and (v) monetary assessment. Each of the factors is assessed on a continuum spanning from 1 (strongest) to 6 (weakest). S&P Global Ratings' "Sovereign Rating Methodology," published on Dec. 18, 2017, details how we derive and combine the scores and then derive the sovereign foreign currency rating. In accordance with S&P Global Ratings' sovereign ratings methodology, a change in score does not in all cases lead to a change in the rating, nor is a change in the rating necessarily predicated on changes in one or more of the...

Research Update