Romania Political Stalemate Threatens Credit Rating
Romania faces mounting pressure on its credit rating after failing to form a new government. The ongoing political crisis collides with rising public debt as S and P prepares to review the country.
Romania's political crisis deepened on Wednesday after lawmakers rejected a prime minister-designate, threatening its investment-grade credit rating ahead of an S&P review. The five-month legislative stalemate has driven the leu to record lows and pushed 10-year bond yields up 60-80 basis points over the past two weeks. S&P Global is scheduled to evaluate the sovereign rating on Friday, holding it at the lowest investment grade with a negative outlook.
