Polish currency regains some lost ground after downgrade

WARSAW, Poland -- Poland's currency regained some lost ground Monday after a sharp drop last week when one major rating agency cut the nation's debt rating.

See Full Article

Polish economists and politicians have criticized the lowering of the rating by Standard & Poor's as ill-informed, while European Union president, Donald Tusk, a Pole, said it was "exaggerated and unjust."

The zloty was trading at around 4.455 to the euro at midday, rebounding from 4.48 in early trading. The Warsaw Stock Exchange's WIG index fell to 1,700.85, down from 1,735 at the close on Friday.

Standard and Poor's announced Friday that it was cutting Poland's debt rating to BBB plus from A minus, with a negative outlook, sending the zloty diving on international markets. S&P said the downgrade was due to policies of the new right-wing government that is introducing sweeping changes to Poland's legislation that have a negative effect on the independence of some key institutions.

Two other rating companies left their view unchanged: Fitch affirmed its rating for Poland at A- with a stable outlook while Moody's made no change to its A- rating with a stable outlook on Friday.

Analyst Marcin Kiepas of the Admiral Markets investment group said S&P's downgrade may be seen as an "indication for foreign investors that situation in Poland may get complicated."

However Finance Minister Pawel Szalamacha insisted the lowering of the rating was "in conflict with Poland's data" because the national economy and finance are stable, with a good outlook.

"We will prove our credibility," said Szalamacha who had previously suggested Poland will seek to have the rating reversed.

Danske Bank commented on Monday that the "full notch downgrade by S&P is bit surprising, in our view."

"We continue to believe that the Polish economy is fundamentally strong, and although we agree that changes to the legal and institutional governance framework are a concern, we believe their impact on the economy is mainly a longer-term issue," Danske Bank said in an English-language statement.



Advertisements

Latest Economic News

  • Third round of NAFTA talks opens in Canada

    Economic CTV News
    OTTAWA -- A third round of NAFTA renegotiations has begun with chief negotiators from Canada, the U.S. and Mexico meeting in the Canadian capital. Canada's chief negotiator, Steve Verhuel, said Saturday that he doesn't expect this round to see any new U.S. Source
  • Chief Canadian NAFTA negotiator not expecting progress on auto content rules

    Economic CTV News
    OTTAWA - Despite tough talk from the U.S. about the job-killing impact of NAFTA on its automotive sector, Canada's chief negotiator isn't expecting to see a detailed proposal from the Americans during the latest round of talks to rewrite the continental trade pact. Source
  • 'Trump has scared the bejesus out of everyone': How Canada could win the Amazon sweepstakes

    Economic CBC News
    Handicapping the Amazon sweepstakes has become something of a cottage industry in the last few weeks. Predictions of which city will land the company's coveted second headquarters cite everything from the bright lights of big cities like New York and Boston to Denver's crisp Rocky Mountain air to Chicago's spot as a hurricane-free haven. Source
  • Pickleball, anyone? A planned retirement village for active boomers

    Economic CBC News
    Tony DiFruscio is a confessed Disney-holic. "I'm a huge Disney fan," says the president of Zest Communities, a Hamilton property developer. "We go there every year with the family, my oldest son went there for his honeymoon. Source
  • Calgary and Saint John mayors urge NEB to reverse Energy East pipeline ruling

    Economic CTV News
    CALGARY -- Mayors from both ends of the proposed Energy East pipeline are calling for the National Energy Board to reverse its requirement that upstream and downstream emissions be included in its review of the $15.7-billion conduit. Source
  • Lawsuit tossed against Little Caesars over non-halal pepperoni

    Economic CTV News
    DETROIT -- A judge has rejected a lawsuit against a pizza franchise, alleging it sold pork as "halal pepperoni" at one of its locations in a Detroit suburb. The Detroit Free Press reports that on Thursday the Wayne County judge dismissed the lawsuit filed by Dearborn resident Mohamad Bazzi against Little Caesars Pizza. Source
  • Walmart testing service that delivers right into customers' fridges

    Economic CTV News
    NEW YORK -- Would you be OK with letting a stranger into your house for the sake of convenience? Walmart is testing the idea with a new service that lets a delivery person walk into your home when you're not there to drop off packages or put groceries in the fridge. Source
  • Quebec renews Uber's permit for another year with tighter rules

    Economic CTV News
    Quebec's transportation minister is renewing a deal allowing ride-hailing company Uber to operate for another year in the province. Laurent Lessard says the deal extension tightens the rules under which the San Francisco-based company will be permitted to continue offering its services to Quebecers. Source
  • Canadian firm applies to build $10-billion Jordan Cove LNG project in Oregon

    Economic CTV News
    CALGARY -- The Canadian company whose proposal to build an LNG export terminal in Oregon was derailed by U.S. regulators last year has resubmitted its application for a bigger, more expensive project. Calgary-based Veresen Inc. Source
  • OPEC says winning battle to end oil glut

    Economic CBC News
    OPEC and other oil producers are clearing a glut that has weighed on crude prices for three years and may wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018, ministers said on Friday. Source