Why a Demotion of Romania by Moody's Does Not Automatically Mean Passing Into "Junk: "If Fitch Contradicts, a Split Rating Appears.
8 Articles
8 Articles
A possible downgrading of Romania by the rating agency Moody's would not automatically mean passing the country into the "junk" category, but would make the Standard & Poor's assessment of October 2 decisive for maintaining the qualifying investment grade, says economic consultant Adrian Negrescu.
Romania is waiting today for a new crucial verdict for the economy. After the evaluation of the Fitch agency, all the views are directed to the Moody's decision, which will show whether the measures taken by the Government are sufficient to avoid the country's downgrading in the unrecommended category of investments. Analysts warn however that Romania is already very close to the status of "chauffatjunk", and a negative decision would mean more …
A possible downgrading of Romania in the "junk" category could have important consequences on public finances, and among the first measures taken by the state could include the freezing of pensions and the reduction of salaries in the budget sector. The warning comes from economist Adrian Negrescu, who claims that such a scenario would put a huge pressure on the state budget. Article What it means for Romania to downgrade to the "junk" category.…
The rating agencies pursue political stability, which ensures the credibility of the economic strategy, and budget execution, supports the interim Minister of Finance.
On Friday night towards Saturday we will find out whether our country rating will be maintained or not by the Moody's international agency.
Consultul economic Adrian Negrescu a avertizat vineri că o eventuală retrogradare a României de către Moody’s nu ar însensemna automat intrarea în categoria „junk”, însă ar face decisivă evaluare S&P din 2 octombrie pentru menținerea ratedului investment grade.
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