Fitch affirms Poland at A- with stable outlook.

By bne IntelliNews March 21, 2011
Fitch Ratings has affirmed Poland's long-term foreign currency issuer default rating (IDR) at A- and long-term local currency IDR at A, both with stable outlooks, the agency has announced. At the same time, the agency affirmed Poland's short-term foreign currency IDR at F2 and country ceiling at AA-. "Poland's ratings are supported by strong growth performance, macroeconomic stability, a credible monetary and exchange rate regime, significant fiscal financing flexibility, a relatively strong banking sector and political stability," Ed Parker, head of Fitch's EMEA sovereign group, said, as quoted in the release. "However, Fitch has become increasingly concerned about the deteriorating trend in Poland's public finances and a failure to implement sustained fiscal consolidation could lead to negative rating action," he added. Poland's general government deficit will likely fall to 5.8% of GDP this year from estimated 7.9% in 2010 and should decline further to 4.0% of GDP in 2012 , Fitch Ratings also said. In early March, finance minister Jacek Rostowski announced that the government's actions in 2011-2012 were designed to bring Poland's general government deficit by 4.4pps at that time, thanks to which Poland will wind up its excessive deficit procedure in 2012, as required by the European Commission. Poland has been the subject of excessive deficit procedure since July 2009, when the European Council also issued recommendations on corrective action to be taken, setting 2012 as the target year for bringing their deficits back below 3% of GDP. ISB

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