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      Scope takes no action on the Republic of Poland
      FRIDAY, 29/01/2021 - Scope Ratings GmbH
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      Scope takes no action on the Republic of Poland

      Scope has taken no action on the Republic of Poland following a monitoring review

      Scope Ratings reviews its ratings either yearly, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations. Scope performs monitoring reviews to determine whether outstanding ratings remains proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology/ies, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

      Scope completed the monitoring review for the Republic of Poland (A+/Stable; S-1+/Stable) on 26 January 2021, incorporating the update from the sovereign methodology. The review resulted in no action on the assigned ratings. This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

      Key rating factors

      Poland’s long-term A+/Stable ratings are underpinned by the country’s strong macroeconomic fundamentals and credible fiscal and monetary policy frameworks, resulting in low economic volatility alongside reduced external sector risks. Poland’s economy proved relatively resilient in 2020, with the pandemic outbreak disproportionately hitting services, more than industry, construction and retail trade. Poland benefits from a profitable, liquid, and well capitalised banking sector and solid public finances, providing space for a large and effective set of fiscal and monetary intervention to support the healthcare sector, businesses and households to cushion the economy from the pandemic’s impact. These factors, combined with the unprecedented EU-wide fiscal and monetary stimulus in response to the crisis, underpin Scope’s view that the country is well positioned to weather the Covid-19 crisis and will return to strong growth from 2021 onward. Against these strengths, the rating considers structural challenges posed by i) the country’s low savings rate, mirroring the low investment rate of the Polish non-financial corporate sector which is dominated by labour intensive small and medium-sized enterprises; ii) growing budgetary pressures weighing on public finances, given demographic developments, substantial social spending programmes and a weak social infrastructure; and iii) political headwinds with the EU and a polarised political environment.

      For the updated scorecards accompanying this review, click here.

      The methodology applicable for the reviewed rating(s) and/or rating Outlook(s) (Rating Methodology: Sovereign Ratings, 9 October 2020) is available on https://www.scoperatings.com/#!methodology/list.
      This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
      Lead analyst: Jakob Suwalski, Director.

      © 2021 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings GmbH, Scope Ratings UK Limited, Scope Analysis GmbH, Scope Investor Services GmbH, and Scope ESG Analysis GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope does not, however, independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided ‘as is’ without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or other damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party as, opinions on relative credit risk and not a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings GmbH at Lennéstraße 5 D-10785 Berlin.

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