Research Update: mBank S.A. 'BBB/A-2' Ratings Affirmed Despite Capital Impact From Legal Provisions; Outlook Remains Developing

mBank S.A. has announced Polish zloty 2.3 billion of additional legal risk costs related to foreign exchange mortgages for the third quarter and guided a net loss for full-year 2022. This will move regulatory capital ratios closer to the minimum requirements than we previously anticipated. Still, we expect the bank will retain strong operating profitability in the coming quarters to rebuild its capital buffers, supporting its strong capitalization and the 'bbb' stand-alone credit profile (SACP), absent material additional provisioning needs. We affirmed the 'BBB/A-2' long- and short-term issuer credit ratings. The developing outlook continues to reflect diverging trends for the SACP and long-term rating. On Oct. 6, 2022, S&P Global Ratings affirmed its 'BBB/A-2' long- and short-term issuer credit ratings

...- mBank S.A. has announced Polish zloty 2.3 billion of additional legal risk costs related to foreign exchange mortgages for the third quarter and guided a net loss for full-year 2022. - This will move regulatory capital ratios closer to the minimum requirements than we previously anticipated. - Still, we expect the bank will retain strong operating profitability in the coming quarters to rebuild its capital buffers, supporting its strong capitalization and the '###' stand-alone credit profile (SACP), absent material additional provisioning needs. - We affirmed the '###/A-2' long- and short-term issuer credit ratings. - The developing outlook continues to reflect diverging trends for the SACP and long-term rating....

Research Update