Poland Struggles to Cope with Economic Crisis

with estimated External Bills of $100bn

World Risk Review highlights economic risk pressures spreading across Europe

"Poland has estimated external bills of around $100bn at a time when the cost of servicing debt payments is increasing. And despite the recession, Moody's have announced that they will not downgrade Poland from its A2 rating but this may change in the future," said Doctor Elizabeth Stephens, Head of Credit and Political Risk Analysis at Jardine Lloyd Thompson.

Poland is struggling to cope with the economic crisis with the zloty hitting its weakest level since the country joined the EU, falling 14% against the Euro this year alone. The Warsaw stock exchange is also trading at its lowest level for five years. This is according to the latest findings from the World Risk Review, a country risk ratings guide produced by leading specialist insurance broker and risk consultant Jardine Lloyd Thompson.

Doctor Stephens continues, "Poland has been downgrade this month in terms of Country Economic Risk, following similar downgrades for Turkey and Ukraine last month demonstrating the continuing pressure on peripheral countries in Eurozone as the European Central Bank has maintained interest rates at a higher level than those in the US and UK".

"Last month we highlighted that Sovereign Credit Risk was increasing for many Eurozone countries and pressure will intensify through the first half of this year in response to the huge supply of bonds that are due, leaving the Euro extremely vulnerable. We expect to see other Eurozone countries facing similar issues over the coming months as pressure spreads across Europe".

Developed to assist corporations, financial institutions and others involved in international trade and investment to develop robust risk assessment strategies, the World Risk Review evaluates 197 countries, according to nine different perils, every month. The risk ratings model is regularly upgraded, downgraded and evaluated to provide a unique insight and analysis into individual countries and regions around the world.

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Editorial notes

Media Enquiries:

Isabella Young
Jardine Lloyd Thompson Group plc
T: 020 7558 3387
EMAIL

About the World Risk Review
The World Risk Review was launched at Chatham House on 30th October 2007, the culmination of 12 months' research and development. It provides political and economic risk assessment in 197 countries and has been designed to help corporations, banks and others involved in international trade and investment develop more robust risk management strategies.

As of 1st December 2008, the methodology underpinning the Country Economic Risk peril has been completely revised to ensure greater accuracy of forecasting. This is particularly important in view of the current level of uncertainly in the global markets.

The methodology is divided into four components that analyse the Real Economy, the Financial Sector & Central Banks, the Current Account & Balance of Payments and Public Account conditions. The wide range of indicators included in each component enables the team to capture the economic conditions of each country and analyse patterns of growth and/or contractions.

The index is highly responsive to a deterioration or improvement in the economic indicators in each component and this will be reflected by a swift adjustment in the country rating.

About Jardine Lloyd Thompson

Jardine Lloyd Thompson Group plc
The Jardine Lloyd Thompson group is a leading risk management adviser and insurance and reinsurance broker, as well as a major provider of employee benefit administration services and related consultancy advice. Jardine Lloyd Thompson Group plc is one of the largest firms of its type in the world providing these services. www.jltgroup.com

Jardine Lloyd Thompson Limited
Jardine Lloyd Thompson Limited provides insurance broking and risk consulting services to large and international companies around the world, or those requiring complex solutions.
Clients include many of the world's leading names and they are market leaders in a number of areas, including Construction, Communications and Technology, Life Sciences, Onshore and Offshore Natural Resources, Marine and Credit and Political Risk.
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