BUCHAREST, Feb. 14 (Xinhua) -- Fitch Ratings affirmed Romania's sovereign credit rating at "BBB-" on Friday, the lowest investment-grade level, and maintained a negative outlook, citing high fiscal and external deficits and rising public debt.
Fitch said the rating is supported by Romania's European Union membership, which facilitates capital inflows and external financing. However, these strengths are offset by large and persistent budget and current account deficits, growing government debt and political risks.
The agency estimated the general government deficit was close to 8 percent of gross domestic product (GDP) in 2025 and said recently adopted measures, including a Value Added Tax increase and spending restraint, could reduce the shortfall by nearly 2 percentage points in 2026. Still, it warned that fiscal risks remain, particularly ahead of political changes in 2027 and elections in 2028.
Economic growth remained below 1 percent in 2025 and is expected to stay under its 2 percent potential until 2027 as tighter fiscal policy weighs on demand. Inflation continues to run above the central bank's target, while the current account deficit was close to 8 percent of GDP in 2025.
Fitch said a failure to stabilize public debt or a deterioration in external financing conditions could trigger a downgrade. Sustained fiscal consolidation and a reduction in external imbalances could lead to a revision of the outlook to stable. ■
