Poland: S & P lowers rating, Fitch maintains – Le Figaro

The Standard and Poor’s (S & amp; P) lowered Friday the debt rating of Poland, considering that laws passed under the leadership of the Conservative government had led to a “weakening of key institutions,” a considered decision ” incomprehensible “by Warsaw

The new note.” BBB + “, is combined with a” negative outlook “, meaning that S & amp; P could lower again note of this country” within the next 24 months “if public expenditures were increasing and monetary policy deteriorated, the agency said in a statement

After the S & amp announcement;. P, the zloty, the Polish currency was down against major currencies. A euro traded at 4.4861 zlotys against 1830 GMT, up 2.17% over one day, while a dollar traded against PLN 4.0948, up 1.32% over the day.

Standard and Poor’s explains its decision in its assessment of the reforms has introduced the conservative Law and Justice party (PiS), Jaroslaw Kaczynski, which has an absolute majority in both houses of Parliament. “The lowering (the note) reflects our view that the system of institutional checks and balances has been significantly eroded since the independence and effectiveness of key institutions are weakened by various legislative measures taken since the legislative elections of October 2015, “said the agency.

It evokes the weakening of” the capacity of the Constitutional Tribunal to work effectively and independently “and the new media law, which, it gives the government the authority to appoint and control their leaders.

Even if “its absolute majority PiS has removed fears of increased political instability resulting from fragile coalition arrangements, we expect to important frictions that persist between the PiS and the opposition, “writes S & amp;. P

Fitch has in turn maintained its rating at” A- “with a stable outlook. The agency highlighted “the strong economic performance of Poland, the solid banking system and governance indicators compatible with an A” but with high external debt, high government debt relative to other comparable countries ( 52% of GDP to an average of 45% for the other) and a per capita income lower.

Fitch however underlines that the PiS came to power will “increase the polarization of Polish politics and lead to greater tensions. “

The Polish Finance Ministry said in a Friday statement that the decision of S & amp; P was” incomprehensible point of view of economic and financial analysis ” .

“This decision is in contradiction with the assessments of other agencies and stakeholders in the financial markets,” the ministry said.

“It is all the more incomprehensible that it was not preceded by the change of perspective that before the decision of S & amp agency; P was positive, “again said the ministry also regretted the lack of communication on the part of the Agency

. ALSO READ:
rule of law in Poland Brussels raises its voice against Warsaw
manifest Polish street “free media”