Romanian bonds and stocks rallied after S&P Global Ratings maintained the country’s BBB- investment-grade credit score, avoiding a downgrade to junk. The yield on the domestic 10-year government notes fell 12 basis points to 7.24%, while dollar-denominated bonds emerged as top performers in emerging markets. The Bucharest benchmark equity index surged 2.7%, the largest gain among global exchanges tracked by Bloomberg.
S&P kept a negative outlook, warning that political turmoil could still trigger a cut if it hinders fiscal deficit reduction over the next two years. The leu gained 0.1% to around 5.3295 per euro, recovering from a record low amid ongoing political instability. Romania has been governed by a caretaker administration since May, with repeated failures to form a stable coalition.
President Nicusor Dan plans to nominate a new prime minister to prevent early elections. Interim Finance Minister Alexandru Nazare emphasized that fiscal consolidation and EU fund absorption remain on track, urging parties to commit to deficit reduction and debt stabilization. Analysts note that while immediate downgrade risks have eased, rating pressure persists due to potential unscheduled reviews in the fourth quarter.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing