| Bear Stearns: Romania in recovery mode, upgrades expected Following a review trip in Romania earlier this month, Bear Sterns investment bank concluded in a report completed yesterday that Romania is in a recovery mode while its fundamentals are rather consistent with a BB+ rating. As Romania is currently rated at B1/BB-, this implies a two notches upgrade in the predictable future. Indeed, BS said in its yesterday’s report that it expects the rating agencies, currently behind the curve, to catch up with the market over the next year or so. The challenges faced by the cabinet at this moment are seen by BS in the restructuring area: mainly in the energy sector [“perhaps the key challenge in Romania”], but also in agriculture [“the sector could prove a bottleneck in the EU accession process”], public administration [“Corruption remains a problem”], pension and social security reform.
Source: Intellinews
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