Fitch confirms Poland’s good credit rating, but lowers growth forecasts

The Fitch agency confirmed the assessment of Poland’s creditworthiness at level A- with a stable outlook, analysts from Santander said after the rating agency’s announcement. At the same time, however, the agency revised downwards its GDP growth forecasts for 2019-2021 by about 0.1-0.2 percent points, to 4.1 percent, 3.3 percent and 2.9 percent respectively.
According to the agency, the Thursdays judgment of the Court of Justice of the European Union (CJEU) may cause a sharp increase in costs in the Polish banking sector.

As for the factors that could improve Poland’s rating, the agency mentioned a rise in GDP resulting in an increase in net foreign income and debt to GDP towards the median of A-rated countries, and a permanent reduction in the public debt-to-GDP ratio. The lack of stabilization of debt to GDP, deterioration of the business climate and weakening of budgetary discipline may adversely affect the rating.

Fitch belongs to the so-called Big Three rating agencies, along with two other American companies: Moody’s and Standard & Poor’s.

(300gospodarka)