MBank S A : Removal of mBank's ratings assigned by Fitch from Rating Watch Negative and affirmation of...

The Management Board of mBank S.A. ('Bank') informs that on 26 August 2022, Fitch Ratings ('Fitch') affirmed the Bank's Long-Term Issuer Default Rating (IDR) at 'BBB-' and Viability Rating (VR) at 'bbb-' and removed the above ratings from Rating Watch Negative (RWN). The rating outlook on the IDR is negative.

The removal of the RWN reflects Fitch's view that the impact of the downgrade of the operating environment assessment coupled with pressures resulting from the Bank's exposure to foreign currency mortgage loans are not sufficiently severe to warrant a downgrade of the Bank's ratings. The ratings of the Bank are also supported by a significant strengthening of the Bank's underlying profitability and its superior operating efficiency. The Negative Outlook on the Long-Term IDR reflects still significant downside risks to the Bank's credit profile. It may result from a higher than currently expected volume of further lawsuits brought by foreign currency mortgage borrowers, the risks of further potential intervention in the banking sector by the Polish authorities, and deeper economic slowdown which could exert stronger than currently anticipated pressure on the Bank's profitability and capital position. Moreover, Fitch has downgraded the Bank's National Long-Term Rating to 'A(pol)' from 'A+(pol)' and has withdrawn the Support Rating and Support Rating Floor, as they are no longer relevant to the agency's coverage following the publication of its updated Bank Rating Criteria on 12 November 2021.