...- We expect mBank's risk costs could rise steeply, following rapid lending growth in 2018-2019 amid Poland's COVID-19-related countermeasures and expected recession in 2020, and its sale may be less likely in the next 12-18 months. - In addition, mBank remains one of the most exposed banks in Poland to economic and litigation risks stemming from its Swiss franc-denominated legacy mortgage loan portfolio (comprising 15% of its loan book). - We are consequently revising our outlook on mBank to negative from developing, and affirming our '###/A-2' issuer credit and '###+/A-2' resolution counterparty ratings on the bank. - The negative outlook indicates that we could lower our ratings over the next 12-24 months if risks for banks in Poland increase significantly, and if litigation or credit risks materialize, leading mBank's risk-adjusted capital (RAC) ratio to fall below 10%....
