Economics
Moody’s Warns Polish Investment Spending at Risk From Politics
- Constitutional court row is ‘credit negative,’ Moody’s says
- Moody’s cut outlook on Poland’s A2 rating to negative in May
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Poland’s escalating political crisis threatens to impair investment spending and economic development, Moody’s Investors Service said two weeks before its scheduled review of the sovereign rating for the eastern European nation.
The crisis over Poland’s constitutional court is “credit negative” as it’s set to escalate tensions with the European Union and sour investment climate, which “threatens to reduce growth,” Moody’s said in a statement late on Thursday. The ratings company assigned a negative outlook to Poland’s A2 credit grade in May, citing waning confidence in the strength of the country’s institutions and in the predictability of its policy making.