...Support-Driven Ratings: The IDRs and Support Rating of mBank SA reflect the extremely high probability the bank would be supported, if required, by its almost 70% shareholder, Commerzbank AG (A+/Negative). Fitch Ratings believes mBank is a strategically important subsidiary of Commerzbank, and its support-driven Long-Term IDR is one notch lower than the parent's. The Negative Outlook on mBank's Long-Term IDR reflects that on the parent. Constrained Viability Rating: mBank's Viability Rating reflects its fairly strong market franchise, modest risk appetite, solid capitalisation and supportive operating environment. However, the rating is constrained by the bank's material (although slowly declining) exposure to foreign-currency (FC) mortgages and substantial FC refinancing needs. High FC Exposure: Retail FC mortgages (predominantly in Swiss francs) continued to reduce in 2013 and 1H14, but remained material at 33% of total gross loans at end-June 2014. The quality of these loans has held...
