Moody’s cuts Poland’s credit rating to lowest level since 2002

Moody's, one of the major credit rating agencies, has reduced Poland's rating from A2 to A3, marking the lowest level for Poland since 2002. This downgrade is expected to increase borrowing costs and decrease investor confidence. The reasons cited for the downgrade include large fiscal deficits, rising public debt, and limited ability to reduce deficits during favorable economic conditions.

Poland's finance minister, Andrzej Domański, acknowledged the downgrade but remained optimistic, stating that the Polish economy is growing rapidly and its fundamentals remain strong. He also emphasized the need for cooperation from all state institutions to strengthen public finances. However, the opposition party Law and Justice (PiS) criticized the downgrade, arguing that it undermines Prime Minister Donald Tusk's claim about Poland being Europe's financial tiger.

The downgrade comes after two major agencies, Fitch and Moody's, shifted Poland's outlook from stable to negative in the previous year, signaling a potential downgrade. Despite this, Moody's reassured that it expects strong economic growth and stable debt levels by the late 2020s.