Economics

Zloty Tumbles Most Since 2011 as Polish Bonds Slide on S&P Cut

  • Commerzbank cuts the nation's Eurobonds to underweight
  • Polish Eurobonds slide most on record after S&P cut to BBB+
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The zloty headed for the biggest decline since August 2011 after Standard & Poor’s downgraded Poland’s credit rating for the first time in response to policies by the new government.

The currency weakened 2.2 percent to 4.4930 by 6:41 p.m. in Warsaw after S&P cut Poland’s debt grade to BBB+, the third-lowest investment level, in the first rating move for the country since 2007. Euro-denominated bonds slid the most on record. Commerzbank AG reduced the nation’s international bonds to the equivalent of sell in response to the rating move.