Rating agency sounds cautious tone on Poland

The rating is the first one the New York-based agency has assigned to Poland.
The political situation, inflation and unemployment kept Poland from making the investment grade.
"While acknowledging the country's recent strong economic performance and vast growth potential, we nevertheless remain concerned about the lingering uncertainty in the political environment. Progress on key policy reforms, especially in the area of social security and pension reform, continues to face difficult political obstacles. At the same time, political obstacles are also delaying progress on the privatization front. Particularly when compared with some of its regional neighbors, Poland has lost considerable ground in this area," Thomson BankWatch said.
Despite that, the director of sovereign risk, Betty Starkey, said Thomson BankWatch has a "favorable outlook on Poland" and that the country's rating is "very likely to go up in the near future."
In the past year, Moody's (Baa3), Standard & Poor's (BB) and IBCA (BB) have all issued sovereign debt ratings for Poland, the lowest being Standard & Poor's. Moody's issued Poland the lowest possible investment grade rating.
The rating helps determine how much it will cost Poland to borrow on the international market and sets the benchmark for domestic issues.
In addition to the sovereign risk rating, Thomson BankWatch issued local currency short-term debt ratings to 14 banks in Poland.
Those receiving the highest rating, LC-1: Bank Gdanski, Bank Gospodarki Zywnosciowej, Bank Handlowy, Bank Polska Kasa Opieki SA, Bank Przemyslowo-Handlowy, Bank Slaski, Bank Zachodni, Powszechna Kasa Oszczednosci-Bank Panstwowy, Powszechny Bank Kredytowy and Wielkopolski Bank Kredytowy.
Those receiving the middle rating, LC-2, were: Bank Inicjatyw Gospodarczych BIG SA, Bank Rozwoju Eksportu and Polski Bank Rozwoju. Kredyt Bank received LC-3. The lowest rating is LC-4.