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Dagong lowers Poland outlook

Updated: 2011-08-03 15:05

(China Daily)

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Dagong Global Rating Co Ltd on Tuesday adjusted the outlook of Poland's sovereign credit rating from stable to negative, while maintaining the country's ratings on domestic and foreign currencies on A and A-.

The agency said the structure of Poland's foreign investments is deteriorating, with huge amounts of short-term capital flowing in and the government's debt burden increasing rapidly, threatening financial stability and an economy that is heavily dependent on foreign capital.

A downgrade is likely if the risks intensify.