Moody's agency confirms Poland's rating at A2
14:57
Moody's agency confirmed Poland's long-term rating at A2 with a stable outlook. Moody's informed that maintaining Poland's rating results from the balance of three key factors.
The first is the country's efforts to increase energy security, as well as NATO's security guarantees and military presence, which alleviates the geopolitical threat resulting from Russia's invasion of Ukraine – including Russia's decision to cut off gas supplies to Poland this week.
The second important factor is the resilience of the Polish economy and the still strong institutional framework, which – as assessed by the agency – faces challenges related to the gradual erosion of the rule of law.
The third factor that influenced the agency's decisions to maintain the rating to the greatest extent was the favorable structure of Poland's debt and its relatively low cost. This makes it possible to bear the greater debt and ease the fiscal challenges resulting from the armed conflict in Ukraine.
"Despite the strong increase in the yields on treasury bonds since the summer of 2021, additionally driven by the tightening of monetary policy by the NBP, Poland's debt servicing costs indicators remain good. The Moody's agency forecasts that in 2022-25 interest payments will amount to an average of 3.4 percent of budget revenues compared to the average of 4.4 percent in 2012-2021," the report reads.
(PAP)
