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Fitch affirms Poland's 'A-' rating, stable outlook

28.09.2020 08:00
International ratings agency Fitch has affirmed Poland's "A-" credit rating with a stable outlook.

Fitch, one of the world’s "Big Three" credit rating agencies, cited Poland's “diversified economy with a track record of stable growth and sound policy framework, coupled with EU membership.”

The agency said that these “are balanced against lower GDP per capita and relatively high (albeit declining) net external debt compared with the 'A' category peers.”

Fitch said it expected Poland's GDP to contract 3.5 percent this year amid the coronavirus pandemic before recovering to growth of 4.5 percent in 2021 and 3.3 percent in 2022.

"Investment growth is expected to be robust in 2021 (5.8% in real terms, following an expected 4% contraction in 2020) as absorption of EU funds ramps up in line with the approaching closure of the current Multi-Annual Financial Framework," the agency said.

It added that the availability of additional EU funding was an upside to growth.

"Private consumption will also rebound although continued uncertainty could prompt more cautious household sentiment than in recent years," the agency said in a statement.

A week earlier, the Moody's ratings agency kept Poland's rating unchanged at "A2" with a stable outlook.

The Polish economy contracted 8.2 percent in the second quarter of this year, the country’s Central Statistical Office (GUS) reported at the end of last month, confirming its earlier estimate amid the coronavirus pandemic.


Source: PAP, fitchratings.com