Foreign currency debt rating upgraded

The zloty immediately gained 2gr on the news, as did stock indices. The upgrade reflects a positive assessment of Poland's economic performance and prospects. "We expect GDP growth in Poland to average 5.6% in 2007-2010," wrote S&P analysts, noting this will improve government revenue and reduce the risk for holders of Poland's sovereign bonds. S&P analysts criticized the government for the lack of public finance reform, which would have justified an even higher rating. Poland's rating is now the same as the Czech Republic's and Slovakia's (Rzeczpospolita, p. B1) R.M.