Moody’s reviews Romania’s ratings, implying a negative outlook linked to clarity on further fiscal policies

International rating agency Moody’s completed a periodic review on the ratings of Romania, which includes a fragile Baa3 long-term issuer rating with a negative outlook, associated - which the rating agency expects to improve only under the scenario of full and effective implementation of the fiscal consolidation programme adopted in 2025, with the process of fiscal consolidation continuing also in 2027 and beyond. Albeit expected at a more moderate pace than in 2026, the fiscal consolidation in 2027 and beyond “lacks clarity on the specifics of the government's deficit-reduction strategy,” the rating agency stressed.

“Reform fatigue, the rotation of the premiership within the four-party governing coalition in the first half of 2027, as well as parliamentary elections in 2028, all raise risks to the prospect of further deficit reduction and a stabilisation of the debt burden at a level that is still commensurate with a Baa3 rating,” the rating agency warned.