Since FDI in the IT Services, Software development and outsourcing services continued in Romania over 2011, we present the current general country rating in place for Q1/2012. Leading rating agencies evaluate Romania on the global economic and financial map as having a stable outlook.
In November 2011, Standard and Poor’s rating services issues the BB+ rating (considered highest speculative grade by market participants) with a “stable” outlook for all foreign and local long-term credit issuers, a rating that may be raised.
In December 2011, Moody’s issues the overall Baa3 rating for Romania, substantiated by the government’s low debt ratios, access to multilateral finance and promising medium term growth.
On the 4th of January 2012, Fitch Rating published the Market Based Indicator of BB+ along with other BBB ratings for Long Term and Short Term Issuer and Country Ceiling. The ratings are encouraging and the outlook for Romania is stable due to recent policy reforms and external support.
Additionally, according to World Bank/IFC Doing Business Project that is “Best countries for doing business” classification (Economies are ranked on their ease of doing business, from 1 – 183. A high ranking means the regulatory environment is more conducive to the starting and operation of a local firm.) Romania’s overall ranking is 56 out of 183 countries.
As per Subcategories Romania is ranked as following:
- Starting a business: 44 out of 183 countries (2009)
- Registering property: 92 out of 183 countries
- Paying Taxes: 151 out of 183 countries
- Getting credit: 15 out of 183 countries
- Protecting investors: 44 out of 183 countries
- Trading across border: 47 out of 183 countries
- Enforcing Contracts: 54 out of 183 countries (2010)
Based on five criteria out of seven listed above, Romania is more likely to be a good location for doing business, as the country is ranked mainly in the top 30% of the index.
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Sources: www.moodys.com; www.standardpoors.com; www.fitchratings.com; www.gfmag.com; www.doingbusiness.org
