Fitch revises Poland's outlook to positive; affirms its IDR at 'A-'.

By bne IntelliNews February 22, 2013
Fitch Ratings has revised the Outlook on Poland's Long-Term foreign and local currency Issuer Default Ratings (IDRs) to Positive from Stable and affirmed the IDRs at 'A-' and 'A', respectively. In addition, Fitch has affirmed Poland's Country Ceiling at 'AA-' and its Short-Term foreign currency IDR at 'F2,' according to the agency's press release. The revision of the Outlook reflects the fact that Poland's general government deficit in ESA 95 terms has narrowed by around 4.5 percentage points of GDP since 2010, to an estimated 3.4% of GDP in 2012, placing it among the EU's best performers. Fitch forecasts further, mild consolidation, to 3.2% in 2013 and 2.7% in 2014. Also, the agency notes that Poland's public debt has stabilised and is forecast to moderate to 54.5% of GDP in 2014 from a peak of 56.4% of GDP in 2011, closing the gap with the 'A' median. Reforms to the pension system adopted in 2012 will improve the medium-term sustainability of public finances. Reforms to the business environment - evident in an improvement in the World Bank's indicator - are underway and could lead to an increase in potential growth in the long term, Fitch concludes.

Related Articles

EC refers Poland to court for delay on renewable energy rules.

The European Commission is referring Poland (and Cyprus) to the Court of Justice of the European Union for failing to fully transpose EU's Renewable Energy Directive, according to the ... more

ZEW Economic Sentiment Indicator for Poland surges to 42.9pts in February.

The ZEW-Erste Group Bank Economic Sentiment Indicator for Poland (economic expectations) surged by 22.3pts m/m to 42.9pts in February, according to a report by the Center for European Economic ... more

FinMin: Poland to inject EUR 5.5bn of FX reserves to ECB upon euro-zone entry.

When Poland joins the euro-zone, it will have to transfer EUR 5.47bn of its foreign-currency reserves to the European Central Bank, according to a statement by the ministry of finance. The ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss