Saturday, August 13, 2011

Romanian Stocks Jump Most in 15 Months on Bucharest Upgrade

Romanian stocks soared the most in almost 15 months as Fitch Ratings upgraded the city of Bucharest’s foreign-currency ranking.

Romania’s Bucharest Exchange Trading Index rose 4.6 percent to 4,678.71 at the end of trading, the biggest daily surge since May 26, 2010.

Fondul Proprietatea SA and Banca Transilvania (TLV), which together comprise more than 42 percent of the 10-member index, jumped 5.8 percent and almost 5 percent, respectively.

Fitch, a New York-based credit rating company, raised its short-term foreign currency rating for the city of Bucharest to F3 from B, while the long-term measure was increased to BBB- from BB+ with a stable outlook.

“The ratings take into account the city’s improvement in budgetary performance and its good track record of debt coverage ratios,” Fitch said in a statement today. Bucharest’s debt is “prudently managed,” the company said.

To contact the reporter on this story: Kira Savcenko in London at ksavcenko@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

No comments: