S&P lowers Poland's Rating To 'BBB+'

Standard & Poor's Ratings Services has lowered its long-term foreign currency sovereign credit rating on 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 erroneous and called on the agency to reverse it. "The S&P agency has not taken economic aspects into account, but is concentrating on politics," he told private TV channel TVN24. "The economy is doing very well. Just two days ago the World Bank increased its economic growth forecast for Poland. The International Monetary Fund has approved a new renewable credit line," he added.