Fitch gives BGK's upcoming €500 mln bond issue an A- rating

Fitch Ratings has assigned Bank Gospodarstwa Krajowego's (BGK) planned debut issue of up to €500 million in state-guaranteed senior eurobonds an expected long-term foreign currency rating of A-, Fitch said. "The notes' rating is in line with the 'A-' Long-term foreign-currency Issuer Default Rating (IDR) of the Republic of Poland. This reflects the unconditional and irrevocable state guarantee for the issue, which covers payments of both principal and accrued interest, and Fitch's expectation that the sovereign will honour the guarantee provided to noteholders fully and in a timely manner. The state guarantee ranks pari passu with Poland's other unsecured senior obligations," a filing read. Proceeds from the issue will be used to finance the National Road Fund. The Fund is not incorporated as a legal entity, and its assets and liabilities are booked off-balance sheet by BGK.