Euro adoption is not linked with rating increase – S&P

The euro adoption would bring Poland long-term benefits in the field of crediting, according to a report issued by Standards & Poor's (S&P). The agency, however, will not increase Polish sovereign credit rating automatically when the state joins the euro zone. According to S&P, euro zone membership would give Poland access to the currency, in which reserve assets are held, and a possibility to issue debt in euro. These factors would enhance the country's credit rating. The agency, however, warns that membership in the monetary union, in which monetary policy is not necessarily in line with member states' needs may affect the rating negatively. “Euro adoption would probably be positive in the long-term horizon due to increased exports and a higher number of foreign direct investments,” Felix Winnekens, S&P's analyst said.