The stable outlook indicates that the government's fiscal consolidation agenda is perceived as credible and that Romania's public and external finances is seen stabilizing over the next two years, S&P said in a press release on Friday.
In the agency's view, risks from Romania's still-elevated twin deficits are mitigated by the prospect of sizable EU funds deployment, the government's stated reform ambitions, and a return to economic growth.
After contracting by a modest 3.9% in 2020, the ratings agency expects Romania's economy to rebound by a solid 5% this year, based on EU-funded investment and the return of domestic demand.