S&P Upgrades Romania to Investment Grade After Six Years By Andra Timu , May 16, 2014 Standard & Poor’s upgraded Romania to investment grade for the first time since 2008 as the economy grows and the government maintains fiscal rigor. The Black Sea country’s long-term sovereign bond rating was raised to BBB-, the lowest investment grade and placing it on par with Russia, Brazil and Spain, from BB+, S&P said today in a statement. Romania has struggled to shed its junk rating over the past 5 1/2 years, embarking on one of the European Union’s toughest austerity programs in 2010 by cutting state wages 25 percent and raising value-added tax by 5 percentage points. The government narrowed the budget gap to an estimated 2.2 percent of gross domestic product this year, from 7.2 percent in 2009. “The upgrade reflects Romania’s rapid progress in improving its external balances,” S&P said in a statement. “We believe Romania will maintain stead...
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