...Standalone Strength Drives Ratings: Bank Millennium's Issuer Default Ratings (IDRs) and National Long-Term Rating are driven by its standalone strength, as reflected in its Viability Rating (VR). The VR suffers from the bank's large legacy Swiss franc mortgage exposure, which weighs on Fitch Ratings' view of its asset quality, profitability, capitalisation and funding, and amplifies legal risks. The VR is underpinned by the bank's well-established domestic franchise, conservative risk appetite, moderate impaired loans, solid capital buffers and stable funding. The Stable Outlook on Millennium's Long-Term IDR reflects broadly balanced risks related to its credit profile. Stable Asset Quality: We believe that asset quality will remain strong in the next 12 to 24 months. This reflects contained inflows of new impaired loans, conservative loan origination, reasonable credit growth and a supportive economic environment. Millennium's impaired loans ratio (4.6% at end-3Q17) should be seen in light...
