Fitch upholds Poland's 'A-' rating with stable outlook

The Fitch ratings agency on Friday maintained Poland's 'A-' rating with a stable outlook against the background of the country's robust economic foundations and good fiscal condition. In a comment, the Entrepreneurship Ministry stressed Poland's economic stability.

Reasonable economic policies and a strong banking sector were among other points that Fitch praised.

It is the first review in the spring season, with the S&P agency scheduled to issue its update of Poland's credit rating on April 12 and Moody's, on April 19.

Fitch noted the good condition of the state budget in 2018, with its lower deficit and higher tax revenue.

The election-season fiscal package that the ruling party Law and Justice (PiS) has put forward will negatively affect the situation due to a number of social transfers and tax cuts, according to Fitch. However, the package will reach its full scale in 2020, therefore the agency increased the country's deficit in that year to 2.8 percent of the GDP.

However, the government will manage to keep the deficit below the EU-required 3 percent of the GDP and within Poland's own spending stabilisation rule, the agency said.

Poland's economic growth peaked at 5.1 percent in 2018, and the growth rate has already started to fall due to such factors as the economic slowdown in the euro zone, the agency observed. In 2020, the Polish economy will grow by 3 percent, Fitch predicts.

The Polish Entrepreneurship Ministry said in a comment to Fitch's report that in its assessment, the agency "also refers to the issue of the balance of public finances and the key fiscal ratios."

The ministry also mentioned Fitch's March 20 decision to raise Poland's GDP growth forecast to 4 percent in 2019 and 3.5 percent in 2020, from 3.8 and 3 percent, respectively, predicted in the agency's December report.

"Poland remains an economy with robust foundations, resilient to adverse external factors, which puts it in the group of leaders in the EU," the ministry added.