Finance Minister expects stronger złoty after Moody's decision
PR dla Zagranicy
Paweł Kononczuk
16.05.2016 07:35
Finance Minister Paweł Szałamacha has said he expects the Polish currency to strengthen on Monday after Moody's rating agency kept Poland’s rating unchanged at A2, while deciding to reduce its outlook from stable to negative.
Paweł Szałamacha. Photo: PAP/Radek Pietruszka
Szałamacha said he expects a “slight improvement” in terms of a stronger złoty and lower bond yields.
Analysts say many investors had expected Moody's to lower Poland’s rating, adding that its decision came as a relief, despite its move to change the country’s outlook.
The agency said that the key drivers for its decision, announced in the early hours of Saturday CET, 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, had 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. (pk)
Source: PAP