Interim Finance Minister Alexandru Nazare ahead of the S&P report / “I have great confidence” that Romania will retain its investment-grade rating

Interim Finance Minister Alexandru Nazare said he was optimistic ahead of the publication, on Friday evening, October 2, of Standard & Poor’s assessment of Romania’s sovereign rating. The agency is analyzing the country’s financial situation in a context marked by political uncertainty, after the Mureșan Cabinet failed to receive Parliament’s vote of confidence.

 “I have great confidence. There have been intensive discussions with Standard & Poor's; they came to Romania and conducted an in-person mission. We held meetings and presented our projections. Indeed, political uncertainty weighs quite heavily, but we also have solid arguments related to budget execution,” interim Finance Minister Alexandru Nazare said on TVR on Thursday evening.

Romania currently has a BBB-/A-3 rating, with a negative outlook, BBB- being the last grade in the investment-recommended category. Nazare said that the authorities had presented the agency with solid arguments regarding budget execution and compliance with fiscal targets.

The minister stated that in May, June, July, and August, Romania did not experience a fiscal slippage, even though the government was interim. He said that these results send a positive message and reflect the continuity of fiscal consolidation.

S&P representatives came to Bucharest on September 24, where they held discussions with government and Treasury officials. Nazare specified that the report is confidential until publication, but expressed his confidence that the projections presented would be considered credible. The minister had previously warned that Romania could not afford a premature easing of fiscal policy.