Standard & Poor's Ratings Services has raised Poland’s following ratings:
1) long-term foreign-currency credit rating to 'A-' from 'BBB+'
2) long- and short-term local currency ratings to 'A/A-1' from 'A-/A-2'.
At the same time, the 'A-2' foreign currency short-term rating was affirmed. The outlook is stable.
According to S&P agency the upgrade reflects Poland 's strong and balanced growth prospects, which have remained decoupled from the country's deteriorating political environment. The agency expects Poland 's GDP to grow by the 5.6% on the average over 2007-2010, without creating significant imbalances in the economy. S&P's upheld its expectations regarding Poland 's accession to the
eurozone, with 2012 being the most likely entry date. However, it noted that political stability and a clear economic and fiscal policy agenda remained elusive since the general elections in September, 2005, and the coalition government headed by the conservative Law and Justice (PiS) remained volatile, "ridden by scandals and continuous threats of government break-up and early elections."
Our view: We view the news as positive.