A review of Poland's credit rating by S&P is scheduled for Friday, May 8. It is one of the three largest and most influential institutions of this type in the world. Investors from all over the world look at its ratings, which translates into, among others, on the costs of borrowing money by governments of individual countries.
“Tonight S&P may show a revision of Poland's credit rating,” Erste Bank economists wrote in a Friday report. “We see a lot of riskthat – following the example of the other two leading agencies – S&P will decide to change the rating outlook to negative“- we read.
Currently, Poland's rating outlook is stable, which suggests that no change in the rating should be expected in foreseeable circumstances. Descending to the “negative” level may result in a cut.
See also: The JCR agency assesses Poland's credibility. Experts point to one factor
In practice, a negative outlook could weaken the confidence of some investors, increase the costs of servicing public debt and cause pressure on the weakening of the Polish zloty and an increase in the yield of treasury bonds. For the economy, it would be, first of all, a signal that international financial institutions assess the country's future economic security worse.
Poland's rating in Moody's and Fitch
Our rating has a negative outlook for the remaining two largest agencies. We're talking about Moody's and Fitch. Agency Moody's after a routine review in March, it did not change Poland's credit rating, leaving the rating at level “A2” with a negative perspective. We have an “A-” rating at Fitch.
Rating agencies assess the creditworthiness of countries, banks and enterprises, determining the risk associated with debt repayment. These ratings help investors make financial decisions and influence the costs of countries and companies borrowing money.
The S&P agency, whose decision we are waiting for, belongs to S&P Global and has been operating on the market for over 150 years. The highest possible rating awarded by S&P is “AAA”, meaning a very high ability to settle liabilities, while lower ratings indicate a greater risk of insolvency.
