...FC Mortgages Weigh on Ratings: The Issuer Default Ratings (IDR) and Viability Ratings (VR) of mBank S.A. primarily reflect its sizeable exposure to legacy foreign-currency mortgage portfolio. This weighs on Fitch Ratings' assessment of the bank's company profile and financial metrics. Foreign currency mortgage holders are vulnerable to a potential sharp and prolonged weakening of the Polish zloty relative to the Swiss franc. These exposures are also a material litigation risk for the bank. Business Model Pressures: mBank's VR also reflects a well-established domestic franchise, conservative risk appetite, solid capital position and a healthy funding and liquidity profile. The bank's traditional business model has delivered stable results. However, structural revenue generation has weakened, which, together with high regulatory burdens and legal risks related to the foreign-currency mortgage portfolio, have led to the bank's business model being more vulnerable to changes in the economic...
