We now believe our ratings on mBank S.A. could benefit from the build-up of additional loss-absorbing capacity (ALAC) buffers, which would provide further protection to senior preferred creditors in a resolution scenario. At the same time, we continue to believe that elevated litigation-related costs from the bank's Swiss Franc portfolio and rising credit losses due to a deteriorating economic forecast could weaken its strong capitalization and the 'bbb' stand-alone credit profile (SACP). We revised the outlook on mBank to developing from negative and affirmed our 'BBB/A-2' long- and short-term ratings. The developing outlook reflects diverging trends for the SACP and long-term rating. On June 9, 2022, S&P Global Ratings revised its outlook on mBank S.A. to developing from negative and
