LONDON (Standard&Poor's) Aug. 8, 2007--Standard&Poor's Ratings Services said today that the ongoing Polish coalition government woes have no effect on the sovereign ratings on the Republic of Poland (foreign currency A-/Stable/A-2; local currency A/Stable/A-1). The ratings on Poland reflect the country's strong and balanced growth prospects, which have remained decoupled from Poland's deteriorating political environment. Poland's solid economic prospects were the chief reason behind the March 2007 upgrade of the sovereign ratings on Poland. The ratings remain constrained, however, by political instability that obstructs progress in structural reforms (including reducing the state's strong role in the economy, and better targeting of social benefits), and by a high general government debt burden. The renewed de-facto breakdown of
