The leading European rating agency, FitchIBCA, on Tuesday graded a "B" rating to the 600 million-euro eurobond issue launched and subscribed by Romania on the private capital markets on Monday.
The "B" rating is one of the lowest grades ever granted by FitchIBCA, therefore Romania is still considered vulnerable to possible internal and external shocks.
The Romanian economy is ruled by the losses incurred by the large state-run companies, by limited progress in terms of restructuring, as well as by the lack of a financial discipline.
Subsequently, unless the restructuring process in Romania speeds up, the considerable potential of the national economy will keep being underestimated, according to the agency analysts.
The financial evaluation agency cannot help but notice the progress made over the past two months, though.
Such progress includes the privatisation of Banca Agricola (the Agricultural Bank), completed in April, as well as the negotiations over the privatisation of Sidex plant, the largest steel maker in Eastern Europe.
The restructuring process is still vulnerable to possible confusion, due to the recent attempts at increasing the share capital of Slatina-based Alro and cutting the stake the authorities in Bucharest are trying to sell to a strategic investor.
In order for Romania to maintain its economic stability and for the country rating to be upgraded, it is capital that the Government should avoid sending out mixed signals and proceed with reforms in the future, the agency feels.
Romania early this week has raised 600 million euros from a eurobond issue launched on the international private capital market. The issue bears 10.625% interest and matures in seven years.
Romania's solvency on the international markets has significantly increased over the past two years, so that FitchIBCA upgraded Romania's country rating from "B-" to "B" in November 2000. Romanian economy's rating outlook is stable.
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