Fitch affirms Poland's rating at A-

Fitch Ratings has affirmed Poland's Long-Term Foreign and Local Currency Issuer Default Ratings at 'A-' and 'A', respectively. The Outlooks are Stable, the agency informed. Poland's 'A-' rating reflects its solid macro fundamentals, government debt close to its rating peers median and improving external finances from a weak starting point. Strong GDP growth in recent years has supported an increase in GDP per capita, which remains low relative to rating peers. Reduced predictability in economic policy since the October 2015 political transition increases downside risks to Fitch's economic and fiscal forecasts, Fitch said. However, Fitch notes that some of the most controversial measures on PiS's agenda during the electoral campaign have been avoided. An initial proposal to convert all FX mortgages was withdrawn following an estimate of its highly detrimental cost to the banks (PLN 67 billion or 3.6 percent of GDP). The renewal of the central bank's Monetary Policy Committee, with members chosen by PiS-controlled bodies, has not led to a change in the conduct of monetary policy. The government has committed to comply with the European Union's 3 percent of GDP deficit criteria.