{"id":3076,"date":"2024-12-18T07:07:28","date_gmt":"2024-12-18T07:07:28","guid":{"rendered":"https:\/\/ofero.news\/?p=3076"},"modified":"2024-12-18T07:07:28","modified_gmt":"2024-12-18T07:07:28","slug":"fitch-cuts-outlook-on-romanias-fragile-rating-to-negative-over-political-uncertainty","status":"publish","type":"post","link":"https:\/\/ofero.news\/?p=3076","title":{"rendered":"Fitch cuts outlook on Romania&#8217;s fragile rating to negative over political uncertainty"},"content":{"rendered":"<p>Fitch Ratings announced on December 17 that it revised the outlook on Romania&#8217;s long-term forex Issuer Default Rating (IDR) to negative from stable while affirming the IDR at the latest investment-grade level (BBB-).<\/p>\n<p>&#8220;Political uncertainty has increased to high levels, and our assessment is that it will likely have a significant adverse effect on fiscal consolidation,&#8221; the rating agency <a href=\"https:\/\/www.fitchratings.com\/research\/sovereigns\/fitch-revises-romania-outlook-to-negative-affirms-at-bbb-17-12-2024?mc_cid=2ff2aefb42&amp;mc_eid=cd1f92f96c\" target=\"_blank\">explained<\/a>.<\/p>\n<p>The presidential election process <a href=\"https:\/\/www.romania-insider.com\/ccr-annuls-presidential-elections-romania-december-2024\" target=\"_blank\">was annulled by the Constitutional Court<\/a> after the surprise first-round victory of the ultranationalist candidate Calin Georgescu due to alleged foreign\/Russian election interference. The court also extended the mandate of the current president, Klaus Iohannis, originally due to end on December 21, 2024, until a new president is elected.<\/p>\n<p>Fitch expects Romania&#8217;s general government deficit to increase to 8.2% of GDP in 2024, above its previous August review forecast of 7.2%.<\/p>\n<p>Although Fitch assumes fiscal consolidation will start in 2025, it revised up the general government deficit forecast to 7.5% of GDP in 2025 and 6.8% in 2026 \u2013 more than double the current projected &#8216;BBB&#8217; median averaging 3.2% in 2025-2026.\u00a0<\/p>\n<p>&#8220;In our view, fiscal consolidation is likely to face difficult trade-offs due to the potential adverse impact on already subdued economic growth and the risk that financial markets volatility could push up the interest costs, further weakening the fiscal position,&#8221; the rating agency commented.<\/p>\n<p><em>iulian@romania-insider.com<\/em><\/p>\n<p><em>(Photo source: <a href=\"https:\/\/www.dreamstime.com\/\" target=\"_blank\">Erik Lattwein\/Dreamstime.com<\/a>)<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Fitch Ratings announced on December 17 that it revised the outlook on Romania&#8217;s long-term forex Issuer Default Rating (IDR) to negative from stable while affirming the IDR at the latest investment-grade level (BBB-). &#8220;Political uncertainty has increased to high levels, and our assessment is that it will likely have a significant adverse effect on fiscal [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3076","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/3076","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3076"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/3076\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}