S & P Lowered Estimates On Incidence Of Recession In Romania

Standard & Poor's Ratings Services changed Monday its estimate of the incidence of gross problematic assets in the Romanian financial system under a reasonable (but not catastrophic) scenario of economic recession to 25%-40% from 35%-50%, the ratings agency said.

S&P also raised its Banking Industry Country Risk Assessment on Romania to group 7, from the previous group 8 assessment.

"The upgrade reflects the good growth and profitability performance of the Romanian banking sector, following several years of a healthy growth pace and accumulating wealth in the economy, and massive inflow of foreign investments into the banking sector, which has created a solid funding base for credit acceleration," the ratings agency said.

Mediafax