Likelihood of extraordinary support from Commerzbank AG, its major shareholder, if needed. Good franchise in Polish retail market. Good risk-adjusted profitability. High share of foreign currency denominated mortgages. Higher-than-peers loan-to-deposit ratio and reliance on wholesale funding. The negative outlook on Poland-based mBank mirrors that on its parent bank Commerzbank AG. As such, if we were to downgrade the parent we would likely also downgrade mBank, unless we noticed an improvement in mBank's risk-adjusted capital (RAC) ratio to sustainably more than 10%. Additionally, 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, we could consider downgrading mBank. A deterioration in the bank's stand-alone credit profile (SACP)
