International rating agency S&P confirmed its BBB- foreign currency sovereign credit ratings on Romania, adding that the outlook, previously stable, is under appeal.

Reportedly, S&P was going to change the outlook to negative, in response to OUG 114.

“The ratings on Romania continue to be supported by its moderate external private and public debt levels, and still sound growth prospects. In our opinion, Romania’s institutional effectiveness remains weak, however, which constrains the ratings,” S&P said in a press release, according to Romania Insider.

“While Romania continues to benefit from solid fiscal and external stock positions, we think that notably widening fiscal and external deficits could over time eat into these buffers and make the Romanian economy increasingly vulnerable to slowing growth momentum,” according to the same document.