Romania avoids downgrade from Fitch after appeal

International rating agency Fitch on July 31 maintained its BBB- sovereign rating with a negative outlook for Romania, but only after the country “appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome.” The nature of the additional information was not disclosed, but the main concern expressed by the rating agency regards the country’s capacity to implement additional fiscal consolidation measures amid political uncertainty and particularly ahead of the 2028 parliamentary elections.

A downgrade action from Fitch would have had a material impact on the fragile political situation in the country, encouraging the rhetoric of the far-right Alliance for the Unity of Romanians (AUR) against the centrist parties that have failed to form a new government after the successful no-confidence motion against acting prime minister Ilie Bolojan.