Two credit-rating agencies believe Poland's economic outlook is "positive"

Last week, Standard & Poor's Ratings Services (S&P) revised its overall outlook for Poland upwards from stable to positive, while Fitch Ratings did the same for Poland's foreign-currency rating outlook. "The outlook revision reflects the improvement in Poland's medium-term fiscal outlook, as well as the economy's good prospects and comfortable external position," said S&P credit analyst Beatriz Merino. Edward Parker, senior director in the Fitch Sovereigns Group cited "a number of encouraging trends, including the positive impact of previous structural reforms on international trade performance and macroeconomic stability." However, the agencies added that putting Poland's finances in good shape would demand further reforms. "Beyond 2005 a deepening of fiscal reforms and a political environment more supportive of fiscal consolidation will be required to meet Poland's ambitious medium-term fiscal targets and adopt the euro before 2010," according to S&P. S&P left Poland's BBB+ long-term and A-2 short-term foreign currency ratings, as well as the A- long-term and A-2 short-term local currency ratings unchanged. Fitch also maintained Poland's BBB+ long-term foreign currency rating and its long-term local currency rating at A with a stable outlook.