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    Moody’s Credit Rating Agency Grants Bank Gospodarstwa Krajowego with Stable Outlook

    Moody’s, the credit rating agency, has assigned a long-term rating with a stable outlook to Bank Gospodarstwa Krajowego (abbrev. BGK – a Polish national development bank – ed.) at a level equivalent to the assessment of the State Treasury. This marks the second global agency, following Fitch, to recognize the Polish development bank in such a manner.

    BGK has received an issuer rating of “A2” in both foreign and domestic currency, while its Medium-Term Note (MTN) program has been rated “(P)A2”. The rating levels are on par with Poland’s credit rating (“A2”), which, according to Moody’s, reflects BGK’s significant role in the development of the Polish economy. The agency highlights that, if necessary and in accordance with the BGK Act, the government will provide appropriate support to the bank. Additionally, the high rating of “(P)A2” for the MTN program is a result of BGK’s ability to issue bonds with an unconditional and irrevocable guarantee from the State Treasury. Simultaneously, the agency has assessed BGK’s outlook as stable.

    “Another rating from a leading agency places BGK among financial institutions with at least two such strong assessments. This demonstrates the bank’s high credibility and credit quality of BGK bonds. In comparison with other issuers in Poland, the bank carries one of the lowest risks of default. Being part of this group gives us greater visibility on the international stage and a stronger voice in the global debate on socioeconomic development. In just the past year, the bank provided PLN 335 billion in support to the Polish economy,”

    said Paweł Nierada, First Vice-President of BGK.

    In 2011, Fitch became the first agency to assign a rating to the bank. In October 2020, amid the midst of the “corona crisis,” the agency reaffirmed BGK’s long-term credit rating (IDR) at “A-” with a stable outlook. They did the same in August 2022.

    A credit rating is an assessment of creditworthiness, which serves as a measure of the investment risk associated with an issuer’s debt securities. It is assigned by a credit rating agency based on factors including economic, political, and social risks.

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