S&P reaffirms Romania's rating at "BBB-". Nazare: "An important result, but insufficient"

The financial rating agency S&P has decided to maintain Romania's sovereign rating at "BBB-", whilst also retaining a negative outlook on the country's economy. The Minister of Finance, Alexandru Nazare, reacted immediately following the announcement, emphasising that adherence to fiscal commitments and the absorption of European funds had weighed decisively in the agency's decision.

"With S&P's decision, we are closing an important evaluation cycle that began in the summer, and we are managing to keep Romania in the investment grade category, despite a complicated political context and a prolonged period of governmental interim. This is an important result, but it is not enough," said Nazare.

What S&P says about fiscal consolidation

According to the agency, Romania's results in 2025 and 2026 have been notable in terms of the pace of fiscal consolidation. S&P estimates that the budget deficit will fall to 6.25% of GDP in 2026, nearly one and a half percentage points below the 2025 level. This progress is attributed to discipline in public spending and the maintenance of solid budgetary revenues.

The agency also took into account the fact that fiscal adjustment and the absorption of European funds remained on track for 2026. According to the Ministry of Finance, PNRR funds reached absorption rates of over 90% for grants and 95% for loans.

S&P had already estimated a deficit of 6.25% of GDP for this year in its previous assessment, a level still considered high compared to other European states.

Why the negative outlook remains

Although the rating has been confirmed, S&P maintained a negative outlook for Romania, citing risks related to the implementation of the fiscal consolidation programme undertaken within the framework of the European Union's excessive deficit procedure, as well as political instability and the state's high financing requirements.

Objectives for 2027

The Minister of Finance outlined the priorities for the period ahead: "The next objectives are vital: staying within the deficit targets for 2026 and building a credible budget for 2027. The assessments in the first quarter of next year will largely depend on these. If we maintain discipline in the 2027 budget execution and remain prudent with a view to 2028, we can create the conditions for the rating outlook to return to stable," added Nazare.