Moody’s revises Poland to negative

Moody's Investors Service said it changed the outlook on Poland's A2/P-1 issuer and government bond ratings to negative from stable and affirmed the ratings.

At the same time, the government's senior unsecured medium-term note and senior unsecured shelf program ratings were affirmed at provisional A2.

Moody’s said the key drivers for the outlook change are:

• Fiscal risks related to a substantial increase in current expenditures as well as the intention to lower the retirement age, the latter raising age-related costs over time; and

• Impairments to the investment climate from a shift towards more unpredictable policies and legislations, as reflected in the ambiguity with respect to the conversion of foreign-currency denominated mortgages and in the prolonged stalemate between the government and the country's constitutional court.

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