Fitch maintains Poland's rating

Ratings agency Fitch has maintained Poland’s credit rating at A- for foreign currency bonds and A for złoty bonds with a stable outlook, the firm said in an announcement on Monday. "The A- rating reflects good macroeconomic results, including sound economic policies, good GDP growth and the stable economic and financial environment," Fitch said. The agency expects that the general government deficit will stand at 2.8 percent GDP in 2015 and will drop to 2.5 percent in 2017. Fitch also said that amendments to Polish covered bonds law, effective from January 2016, are likely to benefit its discontinuity risk assessment of Polish covered bonds and potentially lead to higher ratings. An updated discontinuity risk assessment could allow for a maximum of a 10-notch uplift of the covered bonds rating above its rating floor, consisting of the issuer's Long-term Issuer Default Rating (IDR) adjusted by the IDR uplift, and recoveries on the bonds' given default. The full rating uplift can only be achieved if an asset analysis based on historical performance data is sufficiently robust.