UPDATE 1-Fitch upgrades Poland ratings as economy strengthens

Fitch Ratings on Thursday upgraded Poland's debt ratings to "A-" from "BBB+," saying the country's strong macroeconomic performance has offset political uncertainties.

The ratings agency said Poland "is experiencing a broad-based economic upturn, supported by strong investment rates, impressive trade performance and subdued inflationary environment."

"The upgrade reflects a strong overall macroeconomic performance ... despite ongoing political uncertainty," Fitch's analyst David Heslam added in the statement.

The decision took some investors off guard, causing Poland's currency, the zloty, to rise 0.4 percent against the euro and the dollar.

"It has surprised markets given the budgetary and policy setback and, obviously, given the political backdrop," said Simon Quijano-Evens, economist at CA-IB Unicredit in Vienna.

He added, however, that Fitch is catching up with Moody's Investors Service, which already grants Poland a higher grade.

Standard and Poor's still rates Poland at "BBB+" while Moody's rates it at "A2," one notch above the new grade just given by Fitch.

The country's Finance Minister, Zyta Gilowska, said she expects other agencies to follow with upgrades.

Fitch also raised Poland's country ceiling to "AA-" from "A+" and affirmed its local-currency debt rating at "A". All ratings have a stable outlook.

Source:today.reuters.com