Romania (Republic of) Apr 08
- ID: 2051917
- April 2008
- Region: Romania
- Standard & Poors
Significant growth potential Low general government debt Lack of political commitment to address looming policy challenges Expansionary fiscal and income policies fueling domestic demand and contributing to inflationary pressures Large external imbalances and high dependence on debt financing The ratings on the Republic of Romania are supported by the sovereign's strong growth potential, low general government debt, and EU membership, which provides an anchor to economic policy. The ratings are constrained, however, by a political environment that hinders decisive policy responses in the event of economic challenges. This is a particular constraint given current signs of overheating and the increasingly difficult global credit conditions. Fiscal and incomes policies are expansionary, and the upcoming elections are likely to maintain pressure on...
Companies mentioned in this report are:
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.
Research Type: Full Analysis