...OVERVIEW Romania's fiscal and external deficits are increasing on the back of a + procyclical fiscal stance, although strong nominal GDP growth is keeping government and external debt ratios contained for now. We are therefore affirming our '###-/A-3' ratings on Romania. + The stable outlook reflects our expectation that Romania's twin deficits will + widen as a result of the government's loose fiscal stance, while general government and external debt will remain at modest levels supported by strong economic growth. RATING ACTION On April 7, 2017, S&P Global Ratings affirmed its '###-/A-3' long- and short-term foreign and local currency sovereign credit ratings on Romania. The outlook is stable. RATIONALE The ratings are supported by Romania's moderate external and government debt, amid reasonably firm growth prospects. The ratings are constrained by low income and wealth levels (we estimate Romania's GDP per capita at $9,300 in 2017, the second lowest in the EU), alongside a widening budget...
