Change in the rating of mBank S.A. assigned by Fitch agency as a result of a downgrade of the rating of Commerzbank AG

Current Report |

Drafted on:

19.05.2015

Current report No

34/2015

Abbreviated issuer&rsquo|s name

mBank

Contents: |

The Management Board of mBank S.A. announces that on 19 May 2015 Fitch Ratings Agency (Fitch) downgraded mBank's long-term IDR ("|Issuer Default Rating"|) from "|A"| to "|BBB-"| as a result of the downgrade of Commerzbank's IDR from "|A+"| to "|BBB"|. Consequently, mBank's short-term rating was downgraded from "|F1"| to "|F3"|, while support rating from "|1"| to "|2"|. Similarly, ratings of bonds issued by mFinance France under the Euro Medium Term Note Programme (EMTN) were subject to downgrading: long-term senior unsecured debt rating to "|BBB-"| and short-term senior unsecured debt rating to "|F3"|.

Since 27 March 2014, the negative outlook has been on mBank's long-term IDR, which was announced by the Bank in current report no. 23/2014 dated 28 March 2014. At present, the outlook for long-term rating is positive.

Downgrading Commerzbank's rating, and in consequence, mBank's rating by Fitch arises from the assessment of the results of implementation of the Bank Resolution and Recovery Directive of the European Parliament and of the Council, which radically restricted the state support for banks.

So far, Comerzbank's long-term IDR was higher than its viability rating because of a possibility of support from the German government. Due to verification of this support arising from the implementation of the BRRD, Commerzbank's long-term rating was downgraded to the viability rating. This in turn translated into the verification of Commerzbank's ability to provide mBank with support, if need arises.

mBank's viability rating assessing mBank's financial credibility based on such factors as business profile, management and strategy, risk profile, financial results and external environment has not changed and remained at "|bbb-"|.

After the downgrade, mBank's long-term rating is assigned "|BBB"| investment category, which means good credit quality.

Fitch assigns long-term ratings on the scale: AAA, AA, A, BBB, BB, B, CCC, CC, C, RD, D and short-term ratings on the scale: F1, F2, F3, B, C, RD, D, possibly applying "|+"| or "|-"|, depending on the level of the grade main category. Definitions of Fitch's ratings are available on Fitch website at: www.fitchratings.com, where ratings, criteria and methodology are published.

Deputy Director of the Compliance Department

Maciej Mołdawa 05.19.2015 |