LONDON, June 8 (Reuters) - Romania’s 2024-2028 government bonds saw their biggest daily jump on record on Monday, after the country’s credit rating was spared a downgrade to ‘junk’.
S&P Global on Friday kept Bucharest’s rating on the BBB- last rung of investment grade, though it also maintained its ‘negative outlook’, which is effectively a downgrade warning.
The government’s 2024-2027 bonds saw their biggest daily price gains since issuance, with rises of between 1 and 1.3 euro cents, while longer-term 2038 bonds jumped as much as 1.9 euro cents, Tradeweb data showed.
“We affirmed the rating, given Romania’s comparatively low net general government and external debt. We believe Romania will have the ability to absorb the level of deterioration we now expect for 2020,” S&P had said after it had affirmed the rating. (Reporting by Marc Jones; Editing by Tom Arnold)