Fitch rates Poland eurobond BBB+

Fitch Ratings said it assigned the Republic of Poland's upcoming 10-year euro-denominated eurobond, which is expected to raise up to €1.5 billion, an expected BBB+ rating.

The rating is in line with Poland's long-term foreign currency rating, on which the outlook is stable.

The Ministry of Finance's announcement last week that it intends to prepay in 2005 its €12.3 billion debt owed to the Paris Club, subject to creditor participation, will not, on its own, trigger a change in Fitch's ratings for Poland. The debt management operation should bring Poland some benefits in terms of removing a 2005-09 amortization hump, lengthening average maturity and some likely net present value savings on the debt, Fitch said.

However, Fitch said it will not significantly reduce Poland's total stock of public debt, as the repayment to the Paris Club will be financed by issuing new market debt over 2005 to 2006.

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