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

The escalation of the conflict concerning the Constitutional Court of Poland could worsen the investment atmosphere, and, as a consequence, lower Poland's 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 viewed 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 long-term 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 increasingly provided by net trade balance, not, as it used to be, by investments and  private consumption.