Romania faces significant risk of S&P credit rating downgrade

Romania faces a significant risk of a credit rating downgrade by S&P, according to analysts at Erste Bank. While the bank’s base-case scenario is that the rating will be maintained, the risk remains high as agencies await the 2027 budget bill and further political developments.

Interim Finance Minister Alexandru Nazare emphasized that drafting a credible 2027 budget is an essential condition for continuing Romania’s fiscal consolidation. He noted that adhering to a credible budget and improving the country’s rating outlook is vital for reducing financing costs and signaling economic stability. The minister stressed that the country must not slow the pace of fiscal consolidation to ensure long-term economic growth.