Ratings agency S&P has upgraded Poland’s long and short-term rating in foreign currencies at “A-,” the agency stated on Friday. The ratings’ outlook is stable.
“The upgrade reflects solid achievements in the form of economic growth and fiscal prudence, and well as economic diversification and competitiveness,” S&P said in a report, adding that the growth appears to be “balanced and strong.”
The shift in the rating from BBB+ reverses the agency’s decision to downgrade Poland two and a half years ago.
S&P said that it could upgrade the rating if several conditions are met, including a real increase in income, exceeding the increase in key trade partners without generating external imbalances; country’s budget would have recorded surpluses leading to the reduction of public debt in nominal terms. If the planned employee capital pension plans (PPK) would increase private savings that would also be seen as a positive.
The negative pressure on the rating could result from a significant deterioration of fiscal indicators, as well as a strong increase in wages leading to a faster than expected increase in net external debt, which would potentially indicate a weakening of the country’s competitiveness.
On the same day, other major ratings agency Moody’s kept its rating for Poland at A2 with a stable outlook.