Romania Regains Investment Grade at S&P on Debt Cuts - Bloomberg

Romania Regains Investment Grade at S&P on Debt Cuts - Bloomberg:



"Romania regained its investment credit rating after six years at Standard & Poor’s, which cited the country’s success in reducing its external debt and keeping its budget under control.



The country’s long-term sovereign bond rating was raised one step to BBB-, the lowest investment grade, which puts it on par with Russia, Brazil and Spain, S&P said today in a statement. The outlook for the rating is stable, which “balances the likelihood of fiscal and reform programs exceeding our expectations, against the possibility of external imbalances re-emerging,” S&P said.



Romania has struggled to shed its junk rating over the past 5 1/2 years, embarking on one of the European Union’s toughest austerity programs in 2010 by cutting state wages 25 percent and raising the value-added tax by 5 percentage points. The government narrowed the budget gap to an estimated 2.2 percent of economic output this year from 7.2 percent in 2009."



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