Fitch also affirmed its long-term local currency rating on Romania at ‘BBB’, with stable outlook, the short-term rating at ‘F3’ and the country ceiling at ‘BBB+’.
“Romania has consolidated its public finances successfully under two consecutive international financial assistance programs. In June 2013 the European Commission decreed Romania’s exit from the Excessive Deficit Procedure (EDP) after it reduced its general government deficit to 2.9% (in line with the BBB median) from 5.6% in 2011,” the rating agency said in a statement.
Fitch expects the government will meet its medium term objective of a structural deficit of 1% of the gross domestic product in 2014.
The gross general government debt (GGGD) is expected to stabilize below 40% in 2013-2015, after rising to 38% of GDP in 2012, from 13% in 2008.
In the first half of 2013, Romania ran a current-account surplus equivalent to 1.1% of GDP. Fitch expects the current account will be close to balance in 2013.