Thursday, March 29, 2007

Romania assigned investment-grade ratings by Moody's in annual report

LONDON (AFX) - Moody's Investors Service said has assigned investment-grade ratings and a stable outlook on Romania reflect low government debt and significant economic restructuring of the past few years.

Moody's (nyse: MCO - news - people ) said in its annual report on Romania that the country also benefits from moderate inflation, ample external liquidity, and strong GDP growth.

The foreign currency country ceiling for bonds is 'A1', based on the foreign currency government bond rating of 'Baa3' and assessment of a very low risk of a payments moratorium in the event of a government bond default, Moody's said.

The stable rating outlook balances the benefits of European Union accession against the possible risk of overheating, it said.

However, the rapid credit growth to the private sector, related sharp increases in asset prices and weakening of the current account deficit are a cause of concern, Moody's said.

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