“Our chief concern is that this (political instability) could delay the structural reforms required under agreements between Romania and the International Monetary Fund and European Union, including privatization of state-owned enterprises,” Fitch said.
It said privatization has already been held up by the failed sale of copper mine operator Cupru Min, and by the insolvency of Hidroelectrica, Romania’s top energy producer.
Political uncertainty in Romania heightened in the second quarter of 2012, with two government collapses in less than three months and a coalition led by Victor Ponta of the Social and Liberal Union (USL) taking power in May.
Tensions rose further after the parliament voted to suspend President Traian Basescu, who now faces a referendum on whether he should be removed from office.
Political developments aside, Fitch said the authorities in Bucharest are likely to stick to the IMF/EU program.
“The key constraints on the rating remain structural weaknesses and exposure to Greece and the eurozone economy,” the rating agency said.
Fitch has Romania at ‘BBB-‘, with stable outlook.