PM’s resignation not to affect Romania's rating

Prime Minister Victor Ponta’s resignation will not affect Romania’s current investment grade rating. The Government’s demise will not have a significant impact on Romania’s BBB rating with stable outlook, according to Kit Ling Yeung, Fitch Ratings Associate Director. “The key factor that influences the rating, like we already said in our last report in August, is related to an eventual fiscal relaxation which would endanger the stability of finances public or the macroeconomic stability,” Kit Ling Yeung added, cited by local Agerpres. The stable outlook attributed by Fitch expects some fiscal loosening between 2016 and 2017 given the recently adopted Tax Code. Given the strong consensus around the new Tax Code, which all the Romanian political parties displayed, Fitch doesn’t expect the document to be changed. “Fitch considers that the chance to have early elections is unlikely at this time,” said Kit Ling Yeung. Rating agency Standard & Poor's Ratings Services also announced yesterday that Ponta’s resignation didn’t have an immediate effect on Romania’s country rating, which stands at BBB- with a stable outlook. The agency doesn’t expect early elections, but doesn’t exclude the possibility of new fiscal easing measures. editor@romania-insider.com