S&P keeps Romania's "BBB minus" rating

US rating agency S&P Global Ratings has decided to maintain Romania's rating at BBB-/A-3, with a stable outlook. The advance of the Romanian economy, focused on consumption, could generate wide external fiscal deficits and could increase the vulnerability of Romania's economy to a sudden drop in activity in the medium term. However, Romania’s level of public and external debt is modest and the economy growth could remain solid for a considerable period of time, according to S&P. “While wage convergence is desirable, payment increases, which have already significantly exceeded the core productivity, have led to significant fluctuation cycles in history,” reads the S&P press release. The agency could decrease the rating if it considers that policy changes could cause general government deficits and the state’s borrowing costs could deteriorate significantly. editor@romania-insider.com