DBRS Morningstar agency affirms Poland's rating at ‘A’ with stable outlook
The Morningstar DBRS agency has affirmed Poland's long-term foreign and local currency rating at ‘A’ with a stable outlook, the agency said in a release.
At the same time, Morningstar DBRS confirmed Poland's Short-Term Foreign and Local Currency - Issuer Ratings at R-1 (low). The trend on all ratings is Stable.
The Stable trend reflects Morningstar DBRS' view that the benefits to Poland's macroeconomic outlook from the new government's improved relations with the EU and the disbursement of EU transfers offset risk stemming from geopolitical tension and high interest rates.
"The energy price shock and higher financing costs resulting from Russia's invasion of Ukraine weighed on real incomes and investment decisions last year, but the unlocking of sizable EU funds, strong employment growth, and fiscal support have improved the country's economic growth prospects," the agency stated.
"On public finances, ongoing measures to ease pressures from higher prices and military expenditures will keep Poland's fiscal policy expansionary. The IMF projects by 2026 that Poland's fiscal deficit remains elevated at 5.0 percent of GDP and for public debt to increase above 60 percent," it added.
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