Moody’s lifts three Polish banks

Moody's Investors Service said it upgraded mBank SA’s long-term local and foreign-currency deposit ratings to Baa1 from Baa2, Bank Millennium SA’s long-term and short-term local and foreign-currency deposit ratings to Baa3/Prime-3 from Ba1/Not Prime and Bank BGZ BNP Paribas SA’s long-term local and foreign-currency deposit ratings to Baa1 from Baa2.

The agency also affirmed the ratings of Powszechna Kasa Oszczednosci Bank Polski SA and its domestic mortgage lender subsidiary, PKO Bank Hipoteczny SA.

Moody’s said the action was driven by greater clarity on the legislative proposal regarding foreign currency mortgages at Polish banks, and the agency’s assessment that the costs associated with the draft legislation will be manageable for the banks.

"The costs of the proposed legislation to banks will be manageable and will be phased in over multiple quarters," Moody’s associate vice president Arif Bekiroglu said in a news release.

"The legislation is likely to be implemented without compromising banks' solvency, and are being made at a time of continuing strong economic growth in Poland."

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