S&P downgrades Romania's outlook to 'negative', citing rising public finance risks.

S&P has revised Romania's outlook to 'negative' from 'stable', citing rising risks to public finances without changing the country's BBB- credit rating. Despite this, Romania's Finance Ministry recently raised RON400 million in funds. The downgrade signals potential economic challenges, with the minister calling for deficit cuts and fiscal prudence. Romania's private lending grew by 8.9% year-over-year in December 2024, indicating continued investment opportunities. However, S&P warns that without additional fiscal measures, Romania's debt-to-GDP ratio may reach 65.4% by 2028.