Recent legislative changes confirm the weakening of the institutional environment in Poland, which caused the S&P rating downgrade in January 2016, said Felix Winnekens, the rating agency analyst in an interview with Dziennik Gazeta Prawna.
“The recent legislative changes are a further confirmation of our earlier opinion on the weakening of the institutional sphere and the deterioration of the mechanisms of mutual control and balance, which had the effect of lowering Poland’s rating in January 2016,” Winnekens said.
“We will continue to monitor this situation. Despite recent increases in our GDP growth forecast for Poland by 2017 to 3.6 percent, we still believe that the weakening of the institutional framework can adversely affect sentiments. Both for domestic and foreign investors, and also negatively impact on the medium-term economic growth rate,” Winnekens added.
In January 2016, S&P downgraded Poland’s long-term foreign currency debt rating to BBB+ from A-. The main reason for the reduction was, according to the agency, the weakening of the independence and effectiveness of key institutions.