Fitch downgrades Polish mBank's rating outlook to negative from stable

By bne IntelliNews March 31, 2014

Fitch Ratings has revised the Outlooks for mBank and its mortgage and leasing subsidiaries - mBank Hipoteczny and mLeasing to Negative from Stable. The agency said that the Long and Short-term IDRs and Support Ratings of the entities were affirmed, while the Viability Ratings were not affected.
The Outlook revision follow similar rating action taken a few days earlier on the bank's parent i.e. Germany's Commerzbank (A+/Negative Outlook/bbb). At that time, Fitch revised outlooks on 18 EU commercial banks to Negative on weakening support.
mBank is viewed as a strategically important subsidiary of Commerzbank and its Long-term IDR is therefore notched down one level from the Long-term IDR of the parent. mBank Hipoteczny and mLeasing are considered by Fitch as core subsidiaries of mBank, and their IDRs are equalised with the parent.
Thus, mBank's Long-term IDR are affirmed at 'A' with Outlook revised to Negative from Stable; Short-term IDR is affirmed at 'F1', Support Rating affirmed at '1,' while Viability Rating is unaffected at 'bbb-.' Long-term senior unsecured debt rating is affirmed at 'A,' with Short-term senior unsecured debt rating affirmed at 'F1.'

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