Fitch Cuts Romania Credit Outlook, Warns of Budget Fix Delay

  • Romania is facing a re-run of presidential election next year
  • Fitch has revised up its forecast for country’s budget deficit
The Romanian parliament building in Bucharest.Photographer: Andrei Pungovschi/Bloomberg

Fitch Ratings signaled it may cut Romania’s credit grade, citing high political uncertainty that’s likely to delay plans to reduce the European Union’s highest budget deficit ahead of a presidential election re-run next year.

Fitch lowered the outlook on Romania’s BBB- rating, the lowest investment level, to negative from stable in an unscheduled decision late Tuesday, sending a warning to pro-European parties as they struggle to form a coalition after parliamentary elections this month.