Moody’s cuts Poland’s credit rating to A3 — Notes from Poland
Moody’s has downgraded Poland’s credit rating from A2 to A3, Notes from Poland reports. The last time Moody’s assessed the country’s creditworthiness at this level was in 2002. This is the first downgrade of Poland’s rating by one of the three largest rating agencies since 2016. The decision could increase the country’s borrowing costs and reduce investor confidence.
Reasons for the decision
Moody’s explained the revision by expectations of a prolonged deterioration in Poland’s fiscal sustainability. The agency pointed to significant budget deficits, rising public debt and debt-servicing costs, which have weakened debt affordability indicators.
Moody’s also noted the limited willingness or ability of the Polish authorities to rebuild fiscal buffers during favourable economic periods. According to the agency’s assessment, room to reduce the deficit is narrowed by high spending on social policy and defence.
More current news is available on the UA.News Telegram channel Telegram.
Poland’s budget deficit reached 7.3% of GDP in 2025, the second-highest figure in the European Union. The draft budget for 2027 provides for a deficit of 7.1% of GDP, although the government had previously committed to reducing it to 3.7% of GDP. In the first quarter of the year, the country’s public debt exceeded 60% of GDP for the first time.
Government reaction
Polish Finance Minister Andrzej Domański said that the government takes Moody’s decision seriously but calmly. According to him, the Polish economy is growing rapidly and its fundamentals remain strong. He also stressed the need to consistently strengthen public finances and for all state institutions, including the president, to cooperate.
At the same time, Moody’s changed Poland’s rating outlook from negative to stable. The agency expects strong economic growth in the coming years and public debt to stabilise at 70–75% of GDP at the end of the 2020s.
