On March 29, 2007, Standard&Poor's Ratings Services raised its long-term foreign-currency credit rating on the Republic of Poland to 'A-' from 'BBB+' and its long- and short-term local currency ratings to 'A/A-1' from 'A-/A-2'. At the same time, the 'A-2' foreign currency short-term rating was affirmed. The outlook is stable. The upgrade reflects the country's strong and balanced growth prospects, which have remained decoupled from Poland's deteriorating political environment. Further ratings support stems from a competitive and increasingly diversified economy and a moderate and declining external debt burden. The ratings remain constrained, however, by political instability that obstructs progress in structural reforms, a high general government debt burden, and high, albeit rapidly falling, unemployment. Strong investment growth and
