Rating agency Moody’s upheld Poland’s A2 rating and revised the outlook from negative to stable, citing reduced risks of loose fiscal policy and a lack of material deterioration in the investment climate under the Law and Justice (PiS) government.
“Despite some increase in policy uncertainty post-2015 elections, the evidence does not suggest that the investment climate has materially weakened,” Moody’s said.
In May 2016, the agency downgraded the outlook from stable to negative.
“Reduced risks of loose fiscal policy, with the headline fiscal balance adhering to the 3 percent of GDP limit and public debt stabilizing at or near the current level of 55 percent of GDP. Uncertainties stemming from government policies will remain contained, which in turn will ease the downside risks to the business climate and investment flows,” Moody’s explained.