“Naturally, the bond issue will be affected. The downgrade of Hungary’s outlook and of the other sovereign ratings around us will affect us as well,” said Dan Lazar, secretary of state with the ministry.
Speaking at a conference organized by Ziarul Financiar, Lazar said Romania cannot afford to borrow at high costs, adding that the bond sale will be launched at a “favorable moment.”
Romania plans to offer up to $2 billion of medium-term bonds in a US debt sale scheduled for the end of November, the second international auction this year and the first dollar-denominated bond in more than a decade.
The ministry hopes to raise between $500 million and $2 billion at the debt sale. The minimum maturity was set at 5 years.
Fitch Ratings Friday cut its outlook on Hungary’s credit rating to negative from stable, citing lower economic growth prospects, while peer agency Standard & Poor’s warned of a possible downgrade to “junk” for the heavily indebted country.