Summary: mBank

Sound profitability, underpinned by a good franchise and cost efficiency. Better-than-average asset quality. Likelihood of extraordinary support from its parent, Commerzbank, if needed. High exposure to foreign currency denominated mortgages. Geographic concentration in Poland. Some reliance on wholesale and parental funding. S&P Global Ratings' negative outlook on Poland-based mBank mirrors that on its parent, Germany-based Commerzbank AG. It reflects our view that mBank remains a strategically important subsidiary of Commerzbank AG (A-/Negative/A-2) and is likely to benefit from additional liquidity, capital, or risk transfers in our outlook period of 24 months, if needed. We could also consider downgrading mBank if we perceived a weakening in mBank's strategic importance to its parent and a consequent weakening in the likelihood of extraordinary

...Some reliance on wholesale and parental funding. Outlook: Negative S&P Global Ratings' negative outlook on Poland-based mBank mirrors that on its parent, Germany-based Commerzbank AG. It reflects our view that mBank remains a strategically important subsidiary of Commerzbank AG (A-/Negative/A-2) and is likely to benefit from additional liquidity, capital, or risk transfers in our outlook period of 24 months, if needed. We could also consider downgrading mBank if we perceived a weakening in mBank's strategic importance to its parent and a consequent weakening in the likelihood of extraordinary support from Commerzbank. Also, if we concluded that the support we factor into our ratings on Commerzbank for additional loss absorbing capacity (ALAC) would not extend to its Polish subsidiary, for example due to separate resolution regimes, we would likely lower our ratings on mBank one notch below the unsupported group credit profile (GCP) of '###+' for the Commerzbank group. We could revise the...

Summary