Political dispute in Romania as seen by Moodys
Political noise is almost constant in Romania, according to Moody’s, the sole rating agency that still keeps Romania in “investment grade” camp.
“Political noise is almost constant in Romania, thus it is already factored into our rating for the government”, Kenneth Orchard, analyst at Moody’s told Wall-Street.
“Such political problems do serve to severely constrain the probability of an upgrade over the medium term, as they inhibit the fiscal and structural reform process. However, we have also seen over the past 10 years that the connection between politics and the broader economy is weak. Economic developments are determined by a wide range of factors; political stability is just one small input”.
Moody’s financial rating agency has affirmed Romania’s ratings and ceilings, outlook remaining stable. Moody’s decision to keep Romania’s status as an investment-grade country was supported by the government’s moderate debt burden and by its gradually deepening institutional strength derived from the EU accession.
“Political noise is almost constant in Romania, thus it is already factored into our rating for the government”, Kenneth Orchard, analyst at Moody’s told Wall-Street.
“Such political problems do serve to severely constrain the probability of an upgrade over the medium term, as they inhibit the fiscal and structural reform process. However, we have also seen over the past 10 years that the connection between politics and the broader economy is weak. Economic developments are determined by a wide range of factors; political stability is just one small input”.
Moody’s financial rating agency has affirmed Romania’s ratings and ceilings, outlook remaining stable. Moody’s decision to keep Romania’s status as an investment-grade country was supported by the government’s moderate debt burden and by its gradually deepening institutional strength derived from the EU accession.