Moody's to Decide Romania's Credit Rating Today, Following Fitch. Risk of Higher Borrowing Costs

Romania receives an important new verdict on its economy today. Following the recent assessment by Fitch, attention now turns to Moody's, one of the most significant international credit rating agencies.

Its decision will indicate whether the measures taken by the Government are sufficient for the country to avoid being downgraded to non-investment grade. The stakes are high: should Romania be lowered to this category, the state would face higher borrowing costs, with the effects felt over time both across the broader economy and in the pockets of ordinary Romanians.

Analysts cited argue that our country is already in a risk zone, describing it as "camouflaged junk" – a situation in which the economy is edging very close to an official downgrade, even though one has not yet formally occurred.

The context for this decision is shaped by the Government's efforts to convince international investors that the fiscal measures adopted and the reduction of the budget deficit will lead to stabilisation of the economic situation. The outcome of Moody's assessment will directly influence the trajectory of the Romanian economy in the period ahead.