Research Update: Local-Currency Ratings On Romania Cut To 'BB+/B' On Criteria Update; Foreign-Currency Ratings Affirmed; Outlook Stable Nov 11

Standard & Poors, November 2011

Abstract
Standard & Poor's has revised its methodology and assumptions for rating sovereign governments. In accordance with our updated sovereign criteria, the local-currency sovereign credit ratings on Romania are equalized with the foreign-currency sovereign credit rating, compared with a one-notch uplift previously. We base this on our assessment of the high euroization of the Romanian economy, which in our opinion limits monetary flexibility. We are therefore lowering the local-currency sovereign credit ratings on Romania to 'BB+/B' from 'BBB-/A-3'. We are affirming the foreign-currency sovereign credit ratings at 'BB+/B'. The stable outlook reflects our opinion that Romania's government will continue to consolidate its public finances largely in line with the targets it has specified. On Nov. 29, 2011, Standard & Poor's Ratings...

Companies mentioned in this report are:
- Romania

Action: Affirmed
Action: Downgraded
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Romania

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