Moody’s eyes Polish banks for downgrade

Moody’s Investors Service said it placed its long-term ratings for mBank SA and mBank Hipoteczny SA on review for downgrade. The agency also extended its review for downgrade on Bank Millennium SA, which it started on July 20.

“Over the past months, the Polish government has implemented several measures, which have negatively affected the operating environment for the banking sector. These include a blanket moratorium for local currency mortgages but also the issuance of new retail sovereign bonds with interest at the level of the central bank reference rate, thereby competing directly with banks for depositor funds,” Moody’s said in a press release.

The agency noted these government measures were the drivers behind the losses most rated Polish banks reported in the third quarter.

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