Fitch Warns Romania Risks Junk Status Amid Political Crisis

Fitch Ratings warned that Romania risks a downgrade to junk status if its ongoing political crisis continues to jeopardize fiscal credibility. The agency currently maintains the sovereign rating at BBB minus with a negative outlook, the lowest investment-grade category. To stabilize public debt, Fitch indicates the country requires an additional deficit correction of approximately 1.5 percentage points of GDP.

Fitch Ratings analyst Malgorzata Krzywicka noted that the lack of a functional government since May 5, when Parliament dismissed the government led by Ilie Bolojan, has created uncertainty regarding fiscal predictability. She stated that the reshuffle has dragged on past the summer and that the longer the crisis persists, the more questions arise regarding the capacity to implement necessary adjustments.

In an effort to resolve the instability, President Nicusor Dan designated MEP Siegfried Muresan for the position of Prime Minister on Thursday. Fitch will release a new sovereign rating assessment in January 2027, with the government's ability to present a credible budget and reduce the deficit serving as the primary factors for the decision.