MBank S A : Revision of mBank’s rating outlook to developing by S&P Global Ratings

The Management Board of mBank S.A. ("Bank") informs that on June 9, 2022, S&P Global Ratings (S&P) affirmed the Bank's "BBB/A-2" long- and short-term issuer credit ratings and revised the rating outlook to developing from negative. S&P also affirmed the rating of the Bank's senior unsecured preferred debt instruments at "BBB" and the rating of senior non-preferred debt instruments at "BBB-". The developing outlook indicates that S&P may raise, lower or affirm the ratings over the next 12-24 months.

According to S&P, the Bank's rating could benefit from the build-up of additional loss-absorbing capacity (ALAC) buffers to meet MREL targets. These buffers would provide further protection to senior preferred creditors in a resolution scenario. At the same time, S&P continues to believe that elevated costs of legal risk related to CHF mortgage loans and rising cost of credit risk due to deteriorating economic environment could weaken the Bank's strong capitalization and the "bbb" stand-alone credit profile.