Romania is set to receive a closely watched sovereign rating review from S&P Global Ratings on April 3, a key event for the country’s economic outlook this spring. While analysts expect no change to the current rating or outlook, attention is focused on the agency’s assessment of rising fiscal and external risks, according to data compiled by Ziarul Financiar.

Romania is currently rated BBB- by S&P, the lowest investment-grade rating, with a negative outlook. This positioning leaves the country vulnerable to a downgrade to non-investment grade if fiscal or macroeconomic conditions deteriorate further.

Market expectations point to the rating and outlook being maintained, but investors are expected to scrutinise the accompanying report for signals on the credibility of the government’s fiscal consolidation efforts. S&P is likely to evaluate whether recent policy measures are sufficient to reduce the budget deficit and stabilise public finances.

The review comes amid increasing external pressures. Rising geopolitical tensions in the Middle East, including those involving Iran, have contributed to higher oil prices, adding to inflationary risks and widening concerns over Romania’s trade balance.

These developments may weigh on the agency’s assessment of the country’s economic resilience, particularly as Romania seeks to balance fiscal adjustment with growth and social spending commitments.

The outcome of the review is expected to influence investor sentiment towards Romanian assets, especially given the country’s position at the threshold of investment grade.

iulian@romania-insider.com

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