...- In our view, Poland-based mBank is taking significant steps to derisk its Swiss-franc-related mortgage loans. - We expect this, alongside continued strong underlying profits and gradually receding legal costs, should lead mBank to report profitability more in line with local peers' over time. - We also expect mBank to maintain adequate capitalization levels and sufficient additional loss-absorbing capacity (ALAC) in line with one notch of uplift above the bank's stand-alone credit profile. - We have revised our outlook on mBank to positive from stable and affirmed our '###/A-2' long- and short-term ratings along with our ratings on the bank's debt. - The positive outlook indicates that we could raise the ratings in the next 24 months if mBank's earnings become less volatile and its capital cushion strengthens, while the bank maintains profitability commensurate with that of higher-rated peers....
