Ratings of mBank and mBank Hipoteczny

The table below compares the long-term ratings of Poland, mBank and Commerzbank assigned by the three major agencies, as at the end of 2017.

Fitch and S&P ratings have been assigned at mBank’s request, which means that they are based on detailed information provided to the agencies and talks between agencies’ analysts and mBank’s representatives. The Fitch rating of mBank Hipoteczny and the covered bonds it issues has also been assigned at its request.

In 2017, Fitch Ratings did not change the ratings and rating outlooks of mBank and mBank Hipoteczny. The latest rating change took place on March 7, 2016, when Fitch Ratings upgraded mBank’s long-term foreign currency IDR from “BBB-” to “BBB” and the short-term foreign currency IDR from “F3” to “F2”. The outlook on the long-term rating is stable. On December 8, 2017, Fitch affirmed all the ratings and the outlook on the long-term rating of mBank and mBank Hipoteczny.

On March 28, 2017, S&P Global Ratings upgraded mBank’s long-term rating from “BBB” to “BBB+” as a result of upgrading the rating of Commerzbank AG from “BBB+” to “A-”. The long-term rating outlook for mBank after the upgrade is negative and so is Commerzbank’s long-term rating outlook. Together with the upgrade of mBank’s rating, the rating of bonds issued by mFinance France under the Euro Medium Term Note Programme (EMTN) was also upgraded to “BBB+”.

Moody’s ratings for mBank are based solely on publicly available information, and the bank does not take part in the rating process, having the “non-participating issuer” status.

On December 18, 2017, Moody’s upgraded the following ratings: mBank’s long-term deposit rating from Baa2 to Baa1, counterparty risk assessment (CRA) from Baa1(cr) to A3(cr), baseline credit assessment (BCA) from ba2 to ba1 and adjusted BCA from ba1 to baa3. The long-term rating outlook was changed from stable to positive. As the agency communicated, the main reasons for the rating change included greater clarity of legislation proposals concerning FX mortgage loans and the belief that the potential conversion of FX mortgage loans would not undermine mBank’s capital position and that the bank would be able to manage the costs related to draft legal acts on FX mortgage loans.

mBank’s rating assigned by CI Ratings is based solely on publicly available information. In 2017, mBank’s ratings remained unchanged and on June 6, 2017, they were confirmed by the agency.