Ratings agency Fitch reaffirmed Romania's Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB-' and 'BBB' respectively.

Fitch determined Romania's ratings considering its positive economic outlook, with GDP expected to grow over the next two years, and by its marginally better fiscal position than its 'BBB' peers.

The agency estimated for Romania a 2.7% economic growth for 2015 and a 2.8% growth for 2016.The monetary policy environment supports the economic growth here.

Recent supply-side factors, such as low food and energy prices, have kept inflation at levels below Romanian National Bank’s inflation target (2.5% +/- 1%).

“Fitch's forecast is for a headline fiscal deficit 1.5% of GDP. We also project general government debt-to-GDP to peak at around 39% of GDP.”

However, recent government discussions on various tax cuts pose a downside risk on Fitch's assessment of Romania's public finances.

editor@romania-insider.com