EU entrants enjoy ‘halo’ effect

European Union member countries with low credit ratings, such as Romania and Bulgaria, will continue to benefit disproportionately from the EU halo effect, according to a report by Moody’s Investors Service.

Romania and Bulgaria, which joined at the start of this year, each have Baa credit ratings. The “halo effect” of EU membership means new EU entrants tend to see their credit ratings climb, due to the improved institutional and legal environment, which reduces financial risk.

However, the rep

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