Moody’s warns third time possible rating cut – Policy

This means that if the crisis around TK remains unsolved to 13 May, that the planned revision of the Polish rating by Moody’s, the agency will reduce at least the prospect, and perhaps also the same country rating. This would be the first reduction Polish rating by Moody’s since 1995., That is the moment from when the agency measures the creditworthiness of the country.

The current rating Polish Moody’s is A2 with a stable outlook and remained at that level since 2003 . Polish Rating Moody’s is the highest among the three major rating agencies in the United States. The rating issued by Fitch Poland is a notch lower at A- (corresponding A3 Moody’s), and the Standard & amp; Poor’s two meshes lower at BBB + (Baa1 at Moody’s.)

Monday’s message Moody’s is not surprising. Since November the agency twice already seemed critical of the Polish messages. Shortly after the parliamentary elections announced that the PiS will win a negative return policy, which may end up cutting the rating. In late January, he added that the negative impact on the rating will also affect exceed 3 percent. the budget deficit and espoused by the government to change the rule of the expenditure.

She frightened agency cuts ratings also Polish banks. In the January commentary Moody’s announced that the introduction of a bank tax and currency conversion loans in Swiss francs could threaten the stability of the banking sector, worsen the profitability of the industry, slow lending and reduce the rate of growth of Polish GDP.

The reaction of investors to all these messages was moderate, and Monday’s message went virtually unnoticed in financial markets. Gold is strengthened, the profitability of Polish bonds slightly increased, and the stock market continued its ongoing since mid-January, the trend of chasing losses after nine over the falls.

It seems, therefore, that some investors do not have illusions that a little over a month, Moody’s will lower at least the prospect of Polish rating. Messages Moody’s have the task to prepare markets for this decision, and at the same time provide an alibi agency against criticism from the Ministry of Finance. In January, the Ministry of Paul Szałamacha accused S & amp; P lack of dialogue with the Polish authorities and the lack of warnings about the intentions of such a large reduction Polish rating and outlook. Now such arguments will no longer place.