S&P likely to revise Poland’s rating and outlook

S&P is set to publish its rating and outlook revision for Poland this Friday after market close. The recent data on the budget deficit at the historically low level of 1.5 percent of GDP and decline in public debt to 50.6 percent of GDP are credit-positive news.

Moreover, S&P had suggested in its statement in October that the rating might be hiked due to the lower than anticipated current account deficit in 2017. Poland had a 0.3 percent of GDP current account surplus.

Meanwhile, the pro-cyclical policy continues to be in place and recent reforms such as the lowering of retirement age are negative for long-term potential growth, thereby impacting the rate of convergence that is a significant factor in the rating decision.

“All in all, however, the strong fiscal position may change the outlook to positive”, stated Erste Group Research in a report.

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