Standard & Poor’s has revised Romania’s rating outlook, downgrading it from stable to negative (BBB-/A-3), which may prompt a more cautious approach from investors.

In this context, Daniel Moraru, President of the National Union of Romanian Employers – South-East Regionemphasizes the importance of dialogue:

"It is important to acknowledge the challenges we face in financial markets and the investment sector. Although the country's rating downgrade may be concerning, it is essential to manage these issues calmly, considering the impact on economic stability and long-term development.

I call on the authorities to be open to the business community's perspective and to adopt an approach that focuses less on political considerations.

I emphasize that this negative rating can and does have repercussions for our economy and everyone in the business sector. I hope that government measures will yield favorable results and guide us toward the desired stability of the national economy.

I also look forward to the meeting proposed by the Minister of Finance, Mr. Tanczos Barna, to discuss solutions. It is important that we focus on constructive actions to move forward."

The concern of UNPR-RSE President Daniel Moraru is driven by several potential consequences of the new rating:

Higher borrowing costs:

The downgrade may lead to increased interest rates on debt, as investors perceive a lower rating as a higher risk. This raises borrowing costs for both the government and companies.

Reduced investments:

Local and foreign investors may become reluctant to allocate funds to the country, potentially leading to a decrease in capital inflows and, consequently, economic stagnation.

Financial market volatility:

A lower rating can cause instability in financial markets, leading to larger fluctuations in exchange rates and the prices of stocks and bonds traded on regulated markets

Decline in confidence:

A negative rating can undermine consumer confidence, resulting in reduced consumption and lower economic activity.

Impact on local companies:

Companies dependent on external financing or involved in international business may face difficulties in accessing funds, which could limit their growth potential. 

Adjustments in fiscal and economic policy:

The government may be forced to implement austerity measures or realistic economic reforms to demonstrate fiscal responsibility, potentially affecting public services and investments.

Challenges in refinancing existing debt:

Difficulties may arise in refinancing existing debt, increasing the risk of default.