On April 14, 2008, Standard&Poor's Ratings Services affirmed its 'BBB-/A-3' foreign currency and 'BBB/A-3' local currency sovereign credit ratings on the Republic of Romania. The outlook is negative. The ratings on Romania are supported by the sovereign's strong growth potential, low general government debt, and EU membership, which provides an anchor to economic policy. The ratings are constrained, however, by a political environment hindering decisive policy responses in the event of economic challenges. This is a particular constraint given current signs of overheating and the increasingly difficult global credit conditions. Fiscal and incomes policies are expansionary, and the upcoming elections are likely to maintain pressure on current expenditure, reduce the overall quality of fiscal governance, and contribute to
