Loading ...Banking analysts consider that in the current context of the Romanian market, Fitch Ratings’ decision to downgrade Romania is at least bizarre.
“Fitch’s decision to lower Romania’s rating is at least bizarre, just like Standard & Poor’s attitude.
“Fitch’s decision to lower Romania’s rating is at least bizarre, just like Standard & Poor’s attitude.
I hope rating agencies take responsibility for the reports they work out, because they are independent and do not take action under anybody’s pressure,” BRD head economist Florian Libocor on November 17 told a meeting of the Romanian Association of Financial-Banking Analysts (AAFBR).
The members of the Association, chief economists with the major commercial banks that operate on the local market, contend that rating agencies’ analyses on Romania are incorrect and that the agencies should reconsider their role.
The members of the Association, chief economists with the major commercial banks that operate on the local market, contend that rating agencies’ analyses on Romania are incorrect and that the agencies should reconsider their role.
“The role of rating agencies needs to be reconsidered. The investors who relied too much on them were also wrong. Let me just give you the example of the defunct assessment agency Arthur Andersen,” said the chief economist of the Romanian Commercial Bank (BCR), Lucian Anghel.
The participants in the meeting explained that the decisions of rating agencies are just 50% correct and Florian Libocor underscored that Fitch and S&P were wrong about the current account deficit.
The participants in the meeting explained that the decisions of rating agencies are just 50% correct and Florian Libocor underscored that Fitch and S&P were wrong about the current account deficit.
“It’s bizarre to see how Romania is the only EU member country to have its sovereign rating lowered. As far as the fiscal deficit is concerned, it’s not hard to see that Romania has followed and observed the Maastricht requirements with regard to the current account deficit. I think it would have been good for the agencies to adjust the time of speaking and say that the current account deficit "has been’ not "is" wide,” said the BRD representative.
Florian Libocor and ING Securities manager Ilie Florin consider that Romania has all the reasons to be rated investment grade (attractive to investments).
“In reality Romania is in the investment grade category and I don’t say that because I am a Romanian, but because I view the economic elements and I am referring here to the current account deficit,” underscored Libocor.
“In reality Romania is in the investment grade category and I don’t say that because I am a Romanian, but because I view the economic elements and I am referring here to the current account deficit,” underscored Libocor.
Speaking about the trend of listed stock, Inter Capital president Razvan Pasol said that its value would rise and the upward trend will be back and investors just need to wait for the favorable moment for new investments on the Stock Exchange. However, in his opinion, the markets will not recover any sooner than 2009-2010.
Ilie Florin said that he believes American economy will be the first to recover after the crisis.
“The US will definitely recover before Romania, and Europe will follow,” said Ilie Florin.
Banking experts on Monday attended a debate on the subject of the “Impact of the global financial crisis on Romania,” organized by AAFBR.
“The US will definitely recover before Romania, and Europe will follow,” said Ilie Florin.
Banking experts on Monday attended a debate on the subject of the “Impact of the global financial crisis on Romania,” organized by AAFBR.
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