Scope Ratings reviews its ratings either yearly, or at least every six months in the case of sovereign, sub-sovereign and supranational issuers. Monitoring reviews are unrelated to the calendar that outlines public finance rating actions.

Scope performs monitoring reviews to determine whether outstanding ratings remain proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for Romania (BBB-/Negative; S-2/Negative) on 27 November 2020. This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

Romania’s BBB- rating is underpinned by i) EU membership supporting continued access to capital markets and long-term investment funding, ii) robust growth potential of more than 4% between 2015-19; and iii) still relatively low to moderate levels of public and private debt.

The Negative Outlook reflects i) the deterioration in public finances following multiple years of expansionary fiscal policies and impact of the global health and economic crisis, and ii) limited official reserves to cover outstanding foreign currency denominated debt in a more stressed environment, narrowing the scope of monetary policy action available to support the domestic economy.

The methodology applicable for the reviewed rating(s) and/or rating Outlook(s) (Rating Methodology: Sovereign Ratings, 9 October 2020) is available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst: Bernhard Bartels, Director

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