Summary: mBank

Sound profitability underpinned by good franchise and cost efficiency. Better-than-average asset quality. Likelihood of extraordinary support from parent company Commerzbank AG, if needed. High exposure to foreign currency-denominated mortgages. Geographic concentration in Poland. Some reliance on wholesale and parental funding. S&P Global Ratings' stable outlook on Poland-based mBank mirrors that on its parent, Commerzbank AG. It reflects our view that mBank remains a strategically important subsidiary of Commerzbank and is likely to benefit from additional liquidity, capital, or risk transfers in the outlook period of 12-24 months, if needed. However, we could consider downgrading mBank if we perceive a weakening in mBank's strategic importance to its parent and a consequent weakening in the likelihood of extraordinary support from Commerzbank, unless

...Some reliance on wholesale and parental funding. Outlook: Stable S&P Global Ratings' stable outlook on Poland-based mBank mirrors that on its parent, Commerzbank AG. It reflects our view that mBank remains a strategically important subsidiary of Commerzbank and is likely to benefit from additional liquidity, capital, or risk transfers in the outlook period of 12-24 months, if needed. However, we could consider downgrading mBank if we perceive a weakening in mBank's strategic importance to its parent and a consequent weakening in the likelihood of extraordinary support from Commerzbank, unless we observe an improvement in mBank's risk-adjusted capital (RAC) ratio to sustainably more than 10%. Conversely, our ratings on mBank would be unaffected as long as our stand-alone credit profile (SACP) assessment for mBank is at or above '##+', owing to potential group support from its parent, according to our group criteria....

Summary