Moody's warns of potential Constitutional Court's conflict effect on Polish ratings

The escalation of conflict concerning the Constitutional Court of Poland can worsen the investment atmosphere, and, in consequence, lower the rating, Moody's Investors Service has warned. In May Moody's lowered the perspective of Poland's ranking to "negative", from "stable"; it has now noted that real investment pace is down 2.2 percent y/y. The conflict over the Court is looked at as bad for foreign investments by the rating agency because of its influence on the potential growth of tensions between the government and the EU. The longterm rating for Poland has remained at A2 ( upper-medium quality, low credit risk) since 2002. The agency also retained GDP's growth at 3.5 percent in 2016 and 2017, saying that the momentum of growth will be more and more provided by net trade balance, not, as it used to be, investments and  private consumption.