S&P shifts mBank outlook to developing

S&P said it revised the outlook on mBank SA to developing from negative and affirmed the BBB long-term issuer and senior unsecured ratings and BBB- senior subordinated ratings.

The outlook reflects diverging trends for long-term rating and the stand-alone credit profile, S&P said.

“We believe our rating on mBank could benefit from the build-up of additional bail-in-able buffers. The bank forms a separate resolution group in the multiple-point-of-entry (MPE) resolution framework of its German parent Commerzbank. It is expected to need to build additional loss-absorbing capacity (ALAC) buffers to meet the minimum requirement for own funds and eligible liabilities (MREL) set by Polish resolution authority the Bank Guarantee Fund (BFG),” the agency said in a press release.

S&P also noted, “mBank is important for Commerzbank to achieve its financial targets by 2024.We have revised our assessment of mBank's group status to moderately strategically important from nonstrategic.”

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