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.'

Related Articles

Poland’s Enterprise Investors acquires Croatian grocery chain Studenac

Polish Enterprise Fund VIII, a private equity fund managed by Enterprise Investors, signed an agreement to acquire a 100% stake in Studenac, a network of neighbourhood grocery stores operating in ... more

Polish PM takes over supervision of PKN Orlen and Lotos

Poland’s Prime Minister Mateusz Morawiecki has taken over supervision of two state-controlled oil and gas companies, PKN Orlen and Lotos, the energy ministry said on June 5. Stripping the ... more

CEE's oldest accelerator StartupYard picks six startups for crowdsourced funding

Prague-based start-up accelerator StartupYard will distribute up to CZK20mn (€782,000) to young companies to help them grow their businesses. The money was raised via a crowdfunding campaign ... more