Fitch Ratings has upgraded Romania’s long-term foreign currency and local currency sovereign ratings from ‘BB’ to ‘BBB-‘ and from ‘BB+’ to ‘BBB’ respectively.
At the same time, the Short-term rating and Country Ceiling have been upgraded from ‘B’ to ‘F3’ and from ‘BB’ to ‘BBB-‘ respectively.
After these upgrades the outlook is stable. Fitch Ratings says “this upgrade is supported by Romania’s prudent fiscal policy, advances on key structural reforms and good prospects on European Union accession.”
Moody’s Investor Service has also raised Bulgaria’s country ceiling for foreign currency bonds from Ba2 to Ba1. Ceilings for foreign currency bank deposits and domestic currency bonds have also been raised from Ba2 to Ba1. The outlook on all the ratings is positive.
“Bulgaria’s likely EU membership provides both, the framework and incentives for the government to continue along the path of reform while reducing policy variability,” Moody’s said in a statement.
“The upgrade was widely expected,” says the BA-CA spokesman. “The next market moving goal would be an upgrade to investment grade.”