Bloomberg: Traders already see Romanian government securities as very risky
Traders already see Romanian bonds as the only government securities in the European Union with a “junk” rating, meaning not recommended for investment, according to a Bloomberg piece published on Wednesday, September 16.
Radu Dumitrescu · Journalist
· 2 min read
The cost of insuring against the risk of Romania’s sovereign debt default over the next five years, through credit default swap (CDS) contracts, is by far the highest among securities issued by more than 60 countries worldwide with an “investment-grade” rating.
The risk seen by investors and insurers comes even though two major credit raters, Moody’s and Fitch, confirmed Romania’s position at the lowest level of the investment-grade category, namely BBB- and Baa3, respectively, with a negative outlook.
