Moody's changes Polish outlook

The agency said that the key drivers for the decision were fiscal risks “related to a substantial increase in current expenditures”, and “Impairments to the investment climate from a shift towards more unpredictable policies and legislations”.

In January, Moody’s, one of the world’s big-three rating agencies, warned that it could downgrade Poland’s rating, following a similar move by Standard & Poor’s earlier that month.

Meanwhile in April, Moody’s warned that Poland’s constitutional crisis could damage the country’s attractiveness to foreign investors.

Standard & Poor's in January lowered Poland's long-term foreign credit rating to BBB+ from A-, and warned of a possible further downgrade, saying the new Law and Justice (PiS) government had weakened the independence of key institutions.

The move by S&P sparked anger in Poland, with the Polish finance ministry calling the decision “incomprehensible”. Prime Minister Beata Szydło hit out at “politically-motivated” ratings, insisting that the Polish economy is stable. (pk/rg)