S&P lowers Poland Rating To 'BBB+'

Standard & Poor's Ratings Services lowered its long-term foreign currency sovereign credit rating on the Republic of Poland to 'BBB+' from 'A-' and its long- and short-term local currency sovereign credit ratings to 'A-/A-2' from 'A/A-1', with a negative perspective. The agency said in a statement that "the downgrade reflects our view that Poland's system of institutional checks and balances has been eroded significantly as the independence and effectiveness of key institutions, such as the constitutional court and public broadcasting, is being  weakened by various legislative measures initiated since the October 2015 election." "The negative outlook reflects our view that there is at least a one-in-three likelihood that we could lower the ratings within the next 24 months if monetary policy credibility is undermined or if public finances deteriorate beyond our current expectations," the statement also said. Finance Minister Paweł Szałamacha described the decision as erron