Fitch affirms BBB+ rating for Poland

The international rating agency Fitch Ratings affirmed its "BBB+" rating for Poland's long-term foreign currency debt and the "A+" rating for the long-term local currency debt. This means that the risk level associated with Poland's debts is assessed as low. Fitch also said that the outlook for the long-term ratings was stable. "The agency is encouraged by the new government's subtle shift in the management of public finances, away from nominal deficit targeting toward controlling expenditure," Fitch wrote in its report. However, Fitch is less encouraged by the government's unambitious medium-term targets, which envisage real expenditure growth of 1% annually. The agency also warned that the public debt, which amounted to 43% of GDP in 2001, would exceed 50% of GDP by next year. Fitch said that Poland's membership in the EU expected for 2004-2005 would have positive impact on the country's rating. ISB,kp,bb