The “A” rating, which indicates a low risk of default and a stable economic environment, making it relatively attractive to investors, reflects the agency’s confidence in Poland's economic recovery and its stability amid external challenges, according to an official
statement from R&I.
The agency said: “With inflation stabilizing and private consumption growing, the Polish economy is heading towards recovery.
“Stable growth is expected in the medium term, supported by an economic base supported by the largest population in Central and Eastern Europe and the manufacturing sector.”
It added: “While there are concerns about continued expansionary policies and a widening fiscal deficit, the government's debt ratio is relatively under control.”
The agency continued that Poland’s medium-term growth outlook appears promising, underpinned by a solid economic base as Central and Eastern Europe’s most populous country and its significant manufacturing sector.
“With significant domestic demand and the resilience to external shocks, the country has enjoyed relatively stable economic growth,” R&I said.
While R&I acknowledged potential risks stemming from expansionary government policies and a rising budget deficit, it noted that Poland’s debt ratio remains under control.
This suggests that, despite fiscal pressures, the country’s debt levels are being managed within a relatively stable framework.
Credit ratings, like those provided by R&I, are assessments of a country’s creditworthiness, reflecting its ability to repay debt obligations.
The ratings, assigned for both foreign and domestic currency debt, serve as key indicators for investors on the risks associated with lending to or investing in a country.
Japan Rating and Investment Information, Inc. (R&I) is a prominent Japanese credit rating agency headquartered in Tokyo.
