Moody's cuts Poland's outlook

Rating agency Moody's has maintainted Poland's long-term foreign debt grade at A2, but has changed the outlook from stable to negative. Moody's explained that the key drivers for the decision to change the outlook on Poland's A2 government bond ratings were the following: (1) Fiscal risks related to a substantial increase in current expenditures as well as the intention to lower the retirement age, the latter raising age-related costs over time; (2) Impairments to the investment climate from a shift towards more unpredictable policies and legislations, as reflected in the ambiguity with respect to the conversion of foreign-currency denominated mortgages and in the prolonged stalemate between the government and the country's constitutional court.