Policy risks emerge as key to Outlook on Central And Eastern European sovereign ratings

"The outlook balance for the region overall is negative, largely because of policy risks", said Standard & Poor's Ratings Services  in its latest review of Central and Eastern European (CEE) sovereign ratings outlooks. Three sovereigns (Croatia, Poland, and Turkey) have negative outlooks and two (Albania and Slovenia) have positive outlooks. The outlooks on the rest are stable. 
S&P downgraded Poland to 'BBB+' in January 2016 on weakening institutional settings and the erosion of checks and balances. For the rating agency the new government has weakened the independence of key institutions, warning the rating could fall further, particularly if credibility of monetary policy is undermined.    
Slovakia upgraded to 'A+' in July 2015 on accelerating growth momentum  and our expectation of an improvement in fiscal metrics.    Local currency ratings on Turkey lowered in May 2015 on increasing curbs to the central bank's operational independence.    Hungary upgraded to 'BB+' in March 2015 on reduced external vulnerability and improving growth and fiscal prospects. Bulgaria downgraded to 'BB+' in December 2014 because its weakened banking system required state support, causing  overnment finances to deteriorate.