Legal basis: 

§ 17 Regulation (EU) No 596/2014 Of The European Parliament And Of The Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC

Contents: 

The Management Board of mBank S.A. (“Bank”) informs that on April 27, 2020, S&P Global Ratings ("S&P") affirmed the current ratings of the Bank and revised the rating outlook from “developing” to “negative”.

The Bank currently has the following S&P ratings:

• Long-term issuer credit rating: "BBB", rating outlook: "negative"
• Short-term issuer credit rating: "A-2"
• Stand-alone credit profile: "bbb"
• Resolution counterparty ratings (RCR) - long-term: "BBB+"; short-term "A2".

S&P expects that following rapid lending growth in 2018-2019, in the light of the expected recession in Poland in 2020 and other negative consequences of the COVID-19 pandemic, the Bank’s risk costs could increase steeply. In addition, according to S&P, mBank remains one of the most exposed banks in Poland to economic and litigation risks stemming from its Swiss franc-denominated legacy mortgage loan portfolio.

At the same time, S&P believes that the Bank is one of the most modern and best-digitalized banks in Poland with sound cost efficiency, a relatively small branch network and the Bank’s customers are used to remote channels, which positions the Bank well in an era of branch rationalization and investment in digital channels.

The agency assumes that under current circumstances, the sale of mBank by Commerzbank in the next 12-18 months is less likely.

S&P assigns the long-term issuer credit ratings on the "AAA", "AA", "A", "BBB", "BB", "B", "CCC", "CC", "SD" and "D" scales with the option of adding to ratings from "AA" to "CCC" a plus (+) or minus (-) sign to show relative standing within the rating categories and the short-term issuer credit ratings on the "A-1", "A-2", "A-3", "B, "C, "SD" and "D" scales. S&P’s rating definitions are available at www.standardandpoors.com.