Moody’s downgrades Poland’s credit rating over large deficits

Ratings agency Moody's lowered Poland's credit rating on Friday, noting the European country's fiscal deficits and rise in public debt.

The downgrade brought Poland's rating from A2 to A3, while the outlook was changed from negative to stable.

The shift "reflects our expectations of a sustained deterioration in Poland's fiscal strength," Moody's said in a statement.

"Large fiscal deficits persist, leading to a material increase in public debt and, together with rising interest costs, weaken debt affordability metrics," it added.

Moody's Ratings also said that "fiscal policy effectiveness has weakened," in part reflecting Polish authorities' limited willingness or ability to rebuild fiscal buffers when economic conditions are advantageous.