On June 23, 2003, Standard&Poor's Ratings Services revised its local and foreign currency outlooks on the Republic of Poland to negative from stable. At the same time, Standard&Poor's affirmed its 'BBB+/A-2' foreign currency and 'A/A-1' local currency ratings on Poland. The outlook revision reflects a deterioration of Poland's medium-term fiscal prospects, in view of increased fiscal pressures going forward and political difficulties facing key fiscal reforms. The ratings on Poland are supported by: A manageable external liquidity position. Over the medium term, gross external borrowing requirements (current account deficit plus long and short-term debt payments) are projected to remain slightly less than 100% of reserves. A competitive, resilient, and increasingly diversified export sector. Higher value-added products
