Fitch Ratings on Friday affirmed its ratings on the Romanian economy, and maintained the Stable outlook, citing the country's stable public finances and easing budget deficit.

The long-term foreign currency Issuer Default Rating (IDR) was confirmed at 'BBB-', and the local currency IDR was affirmed at 'BBB'. The agency also maintained the Country Ceiling at 'BBB+' and the Short-term foreign currency IDR at 'F3'.

The Stable outlook reflects Fitch's assessment that upside and downside risks to the rating are currently balanced.

According to Fitch, Romania's general government deficit will likely fall modestly in 2014-15, while public debt is set to rise to 40 percent of GDP. The government will likely continue its efforts towards attaining the medium-term objective of a structural budget deficit of 1 percent of GDP.

The agency further noted that factors that could trigger a positive rating action in future include stronger trend economic growth and a faster reduction in external debt.

Meanwhile, a significant fiscal loosening, a sustained loss of momentum in the implementation of key structural reforms, or external macroeconomic/geopolitical shocks could lead to a downgrade.

RTTNews