Poland's pension reform neutral for ratings - Fitch
March 25, 2014
Poland's recent pension system reform as well as its new spending rule are neutral for Poland's A-/A/Stable ratings ascribed by Fitch Ratings agency," Fitch said in a press release citing its new report.
The agency said it will focus in its assessment on "underlying fiscal consolidation, as well as reduction of external indebtedness and income convergence.
The pension reform is rating neutral insofar as a public debt-to-GDP reduction estimated at 7.5 ppt is offset by a rise in Poland's long-term pension liabilities, Fitch said.
As for Poland's new stabilizing expenditure rule, it "could support increased fiscal discipline," but the recent suspension of the previous spending rule could indicate point to the risk that "fiscal rules may be breached in future", Fitch said.