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.
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