Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling - S&P Global Ratings’ Credit Research

Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling

Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling - S&P Global Ratings’ Credit Research
Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling
Published Jun 27, 2023
10 pages (4510 words) — Published Jun 27, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

The European Court of Justice (ECJ) ruling on June 15, 2023, indicates potentially higher provisioning needs for Polish banks with legacy mortgage loan portfolios denominated in foreign currencies. We expect most banks can absorb these provisioning needs, given their strong operating profitability and available excess capital. Banks would have time to restore their capital positions if needed. We now see reduced risks for the Polish banking system and view the trend for industry risks as stable. We affirmed our issuer credit ratings (ICRs) on mBank and Pekao, raised our ICRs on Alior, and took various actions on our ratings on the banks' debt instruments. The outlooks on all three long-term ICRs are stable. FRANKFURT (S&P Global Ratings) June 27, 2023--S&P

  
Brief Excerpt:

...June 27, 2023 - The European Court of Justice (ECJ) ruling on June 15, 2023, indicates potentially higher provisioning needs for Polish banks with legacy mortgage loan portfolios denominated in foreign currencies. - We expect most banks can absorb these provisioning needs, given their strong operating profitability and available excess capital. Banks would have time to restore their capital positions if needed. - We now see reduced risks for the Polish banking system and view the trend for industry risks as stable. - We affirmed our issuer credit ratings (ICRs) on mBank and Pekao, raised our ICRs on Alior, and took various actions on our ratings on the banks' debt instruments. The outlooks on all three long-term ICRs are stable. FRANKFURT (S&P Global Ratings) June 27, 2023--S&P Global Ratings said today that it has taken several rating actions on Polish banks: - We affirmed our '###/A-2' long- and short-term ICRs on mBank S.A. and downgraded to '##+' from '###-' the bank's senior subordinated...

  
Report Type:

Ratings Action

Ticker
BRE@PW
Issuer
mBank S.A.
GICS
Diversified Banks (40101010)
Sector
Global Issuers, Structured Finance
Country
Poland
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
Buy Now

More from S&P Global Ratings’ Credit Research

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling" Jun 27, 2023. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Rating-Actions-On-Three-Polish-Banks-Reflect-Differing-Provisioning-Needs-Following-ECJ-Ruling-3012828>
  
APA:
S&P Global Ratings’ Credit Research. (). Rating Actions On Three Polish Banks Reflect Differing Provisioning Needs Following ECJ Ruling Jun 27, 2023. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Rating-Actions-On-Three-Polish-Banks-Reflect-Differing-Provisioning-Needs-Following-ECJ-Ruling-3012828>
  
US$ 150.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Residential Mortgage-Backed Securities from one place.