Fitch affirms Poland’s A- credit rating with negative outlook

Fitch Ratings has affirmed Poland’s credit rating at A-, but maintained a negative outlook. The agency cited the absence of a credible budget consolidation plan, domestic political issues, and the risk of loosened fiscal policy ahead of upcoming elections as primary concerns.

Fitch projects Poland’s budget deficit to reach 6.9% of GDP this year, with a slight decrease to 6.7% expected next year. This is significantly higher than the median for countries with similar ratings. Additionally, public debt is projected to rise from 59.7% of GDP in 2025 to 72.7% by 2028.

Despite these fiscal risks, Fitch noted that Poland benefits from a large, diversified, and resilient domestic economy and a strong base of domestic investors. Polish Finance Minister Andrzej Domański described the rating affirmation as “very good news” that demonstrates the economy remains strong and resilient, while acknowledging the risks facing public finances.