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Moody’s Downgrades Poland's Rating
The agency said large deficits and rising debt have weakened fiscal strength and could raise Poland’s borrowing costs.
- On Friday, September 18, rating agency Moody downgraded Poland's long-term credit rating to A3 from A2, marking the first such move by a major agency since January 2016. The cut reflects what Moody called "a durable deterioration" in Poland's fiscal strength.
- Mounting fiscal deficits and heavy borrowing have weakened Poland's public finances, prompting Moody to warn of "limited willingness or ability" among Polish authorities to rebuild fiscal buffers during favorable economic conditions. Political constraints between President Karol Nawrocki and Prime Minister Donald Tusk have delayed fiscal correction.
- Government debt has exceeded the 60 per cent of GDP threshold enshrined in European legislation, crossing that limit in the first quarter of this year. The budget deficit ballooned to 7.3 per cent of GDP in 2025, according to Eurostat, second-highest in the EU after Romania's 7.9 per cent.
- Finance minister Andrzej DomaDski dismissed the downgrade as not a cause for alarm, stating on social media that "the Polish economy is growing fast, and its fundamentals remain strong." He added that strengthening public finances would require cooperation from all state institutions, including President Nawrocki.
- Moody forecasts public debt will climb to 68.9 per cent of GDP by 2027, up from 59.7 per cent in 2025. The agency warned that debt must not climb past 75 per cent of GDP to avoid further downgrades, though it expects debt to stabilize at 70-75 per cent by the late 2020s if authorities tighten spending.
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Rating agency Moody's downgraded Poland's rating. — We want to ask Mr. Domański how much it will actually cost to service the debt after the rating change — said PiS Vice President Przemysław Czarnek.
·Warsaw, Poland
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Poland's downgraded rating is a historic decision in the financial markets. After more than two decades, Moody's has downgraded Poland's creditworthiness from "A2" to "A3." Although the Finance Minister offers reassurance and points to the economy's strong fundamentals, economists are sounding the alarm: the growing deficit, debt concealment, and the 2027 election campaign are creating an explosive mix. Moody's has once again… This article, Mood…
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Leaning Left0Leaning Right1Center2Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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