S&P maintains Poland's rating with stable outlook
Late Friday, S&P Global Ratings announced that it had affirmed Poland's credit rating at 'A-'. The agency also defined the ratings outlook as stable.
S&P mentioned "diversified economy," "manageable levels of public and private debt, solid external metrics, and relatively deep domestic capital markets" among Poland's strengths.
The agency expects Poland's general government deficit to rise to 1.5 pct of GDP in 2019 and then increase to 2.6 pct in the years 2020-2022. The forecast takes into account the government's latest fiscal package. Previously, S&P forecast 2.0 pct deficits in 2020 and 2021.
"These projections are based on a moderating economy and labor market," S&P said of its fiscal forecasts. "However, if wage growth remains over 7 pct, and employment growth at 2 pct, Poland could experience another year of strong fiscal receipts and hence better headline budgetary outcomes."
In late March 2019, Fitch rating also affirmed Poland at A- with outlook stable.
Poland has a two-notch set of ratings on the A- from Fitch and S&P and a higher A2 from Moody's, which is scheduled to have its say on April 19. (PAP)
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