Bulletin: Poland's Presidential Election Result Has No Immediate Impact On Sovereign Ratings Or Outlook

FRANKFURT (Standard&Poor's) May 26, 2015--Standard&Poor's Ratings Services said today that the outcome of Sunday's presidential elections in Poland has no immediate impact on its ratings and outlook on Poland (foreign currency A-/Positive/A-2; local currency A/Positive/A-1). Opposition candidate Andrzej Duda from the Law and Justice party (PiS) won by a small margin. In our view, the election result sets the stage for a likely heated campaign ahead of the parliamentary elections, scheduled for October this year. It could also affect future monetary policy because the incoming President Duda can nominate a new central bank governor in 2016. The ratings on Poland already incorporate our estimates of a certain degree of pre-election spending, including a projected deficit of

...FRANKFURT (Standard & Poor's) May 26, 2015--Standard & Poor's Ratings Services said today that the outcome of Sunday's presidential elections in Poland has no immediate impact on its ratings and outlook on Poland (foreign currency A-/Positive/A-2; local currency A/Positive/A-1). Opposition candidate Andrzej Duda from the Law and Justice party (PiS) won by a small margin. In our view, the election result sets the stage for a likely heated campaign ahead of the parliamentary elections, scheduled for October this year. It could also affect future monetary policy because the incoming President Duda can nominate a new central bank governor in 2016. The ratings on Poland already incorporate our estimates of a certain degree of pre-election spending, including a projected deficit of 3% of GDP, which contrasts with the government's forecast of 2.7% of GDP. However, given more recent rhetoric from the ruling and opposition parties, further loosening of the government's fiscal stance may be likely...

Bulletin