WARSAW: Rating agency Standard and Poor’s (S&P) affirmed on Friday the long-term foreign-currency rating of Poland at BBB+ but also kept its negative outlook. The agency said that concern remained over institutional changes made by the ruling Law and Justice (PiS) party, but that external financing needs were moderate and strong growth potential existed, according to a statement.
S&P said that if monetary policy credibility were undermined or public finances deteriorated by more than expected, then the agency could again cut Poland’s ratings. On 15 January, the agency – one of the “big four” rating companies – surprisingly downgraded Poland’s rating to BBB+ from A- and gave a negative outlook as a result of PiS’s initial moves that were deemed to weaken the independence and functioning of key institutions.
S&P said PiS’s changes to the Constitutional Tribunal – one reason for the January downgrade and the source of an ongoing dispute with the European Commission – continued to render the institution virtually paralysed as the government had not yet reversed the changes despite outside pressure.
