The S&P agency has confirmed Poland’s rating at ‘A-‘ (stable). According to Finance Minister Magdalena Rzeczkowska, this is further evidence that Poland is pursuing a policy that effectively minimises the negative impact of the Russian aggression against Ukraine on the Polish economy.

The rating agency Standard & Poor’s has maintained the rating for Poland, for both short-term and long-term obligations. Poland’s rating was maintained at A-/A-2 for long- and short-term liabilities in foreign currency and A/A-1 for long- and short-term liabilities in domestic currency.

“The major rating agencies recognise the stable situation of our public finances and the strength of the Polish economy. The S&P agency has once again maintained Poland’s high rating, underlining the competitiveness of our economy, our strong external position and the good situation of our public finances” said the finance minister.

The agency, in a press release, stressed that Russia’s aggression against Ukraine and the resulting stagflationary shock had hit the Polish economy hard, as a result of which the agency lowered its growth forecast for Poland for this year to 4.0% and for 2023 to 1.2 %. Poland’s competitive, diversified economy, strong external position and sound public finances will help minimise the negative risks posed by the war in Ukraine.

According to S&P, an upgrade of Poland’s rating is possible if Poland maintains economic growth and good public finances once the effects of the conflict have subsided. On the other hand, the rating could come under pressure if the impact of the conflict in Ukraine is greater and more prolonged than currently expected, resulting in a significant economic slowdown in the medium term. A downgrade would be possible in the event of lower transfers of funds from the European Union as a result of political tensions between Poland and the EU authorities.

Arkadiusz Słomczyński