S&P upgrades Poland to A-

Ratings agency S&P has upgraded Poland to A- giving the country a “stable” outlook, and adding that growth appears “balanced and strong”.

The shift in the rating from BBB+ reverses the agency’s decision to downgrade Poland two and a half years ago.

“The upgrade reflects solid achievements in the form of economic growth and fiscal prudence, and well as economic diversification and competitiveness,” S&P said in a report.

S&P’s decision to promote Poland received an immediate reaction of satisfaction from the government.

"We have welcomed the (S&P decision) with a great satisfaction,” Teresa Czerwińska, the finance minister, was quoted as saying on Twitter after the decision became public on Friday evening. “It is a confirmation that the steps we've made were right and have led to positive changes in Poland's economy. We have faster than expected economic growth and a lower than expected budget deficit.

“From the beginning our government was determined to tighten the tax system and reform tax administration, and this is now bringing tangible results,” she added.

The upgrade brings S&P broadly in line with the other rating agencies when it comes to Poland. On Friday Fitch reconfirmed its A-, saying the rating reflected “a diversified economy and strong macroeconomic foundations, supported by a robust economic framework and a solid banking sector”.

Moody’s, the last of the “big three” agencies, kept its rating for Poland at A2 with a stable outlook.