One of the most modern and best-digitalized banks in Poland. Sound profitability underpinned by good franchise and cost efficiency. Stronger capitalization than peers, given stricter regulatory requirements. High exposure to legacy foreign currency-denominated mortgages and related litigation risks. Accelerated lending growth, significantly above the market average accompanied by an increase in costs of risk. Uncertainties on future ownership and related possible strategic and organisational changes, given that mBank is flagged "for sale" by the Germany-based controlling investor Commerzbank AG. The developing outlook indicates that we may raise, lower, or affirm the ratings over the next 12-24 months, depending on the implications of the sale process of mBank. The eventual direction of the ratings could depend in particular on the credit
