WARSAW: Poland had its credit rating affirmed at A2/P-1 with stable outlook, Moody’s said in a statement on Monday.
The affirmation of the A2/P-1 ratings reflects Poland’s robust real GDP growth driven by strong domestic demand on the backdrop of robust employment and investment activity, the agency said. However, structural weaknesses in the labor market and an aging population continue to constrain the country’s medium-term economic outlook, Moody’s said.
Poland’s elevated general government debt-to-GDP is expected to level off within the next two years, and debt affordability as measured by interest payment-to-revenue has improved, the agency also said. At the same time, the government’s structural budget deficit remains high relative to peers, and fiscal risks relate to the electoral cycle with parliamentary elections likely to be in October.
