Rating credibility

Rating of PKO Bank Polski SA

The rating agencies Moody’s Investors Service and Standard and Poor’s (which assigns a paid rating to the Bank in accordance with their own procedures for assessing banks), issued financial credibility ratings for PKO Bank Polski SA in 2016.

Moody’s Investors Service Rating

On 16 May 2016 rating agency Moody’s Investors published at www.moodys.com a press note which confirmed ratings for Bank’s both long- and short-term deposits at A2/P-1, liabilities at A3 and corrected perspective of Bank’s long-term deposits on negative from stable. At the same time agency has maintained a stable perspective for Bank’s long-term liabilities. Perspective correction of Bank’s long-term deposits was the consequence of similar correction of rating for Poland. According to notes:

  • long-term deposit rating was held at A2 level, perspective was corrected to ‘negative’ from ‘stable’,
  • short-term deposit rating was held at P-1 level,
  • rating for senior unsecured liabilities was held at A3 level, perspective was hold as ‘stable’,
  • MTN programme liability rating was held at (P)A3 level,
  • rating of other short-term liabilities was held at (P)P-2 level,
  • counterparty risk rating was held at A2(cr)/P-1(cr) level.

In the note Moddy’s agency informed that Bank’s deposit and liabilities rating were held intact due to agency’s expectation of continuous moderate support from the government. Intact ratings for Bank are connected with good quality of assets and adequate level of write-downs of impaired loans, which parameters improved in recent years. At the same time, Moody’s indicated that the Bank has strengthened its capital base.

Ratings as of 31 December 2016 (paid rating)

Moody’s Investors Service
Long-term deposit ratingA2 with a negative outlook
Short-term deposit ratingP-1
Senior unsecured debt ratingA2 with a stable outlook
Rating of the MTN Program Liabilities(P)A3
Short-term liabilities rating(P)P-2
Long-term counterparty risk assessmentA2(cr)
Short-term counterparty risk assessmentP-1(cr)
 

Standard and Poor's Rating

On 19 January 2016, the rating agency Standard and Poor’s withdrew its ratings issued for the Bank at the Bank’s request submitted on 17 December 2015. The Bank terminated its agreement with Standard and Poor’s and requested the withdrawal of its ratings due to the limitation of its plans concerning bond issues on international markets, in particular in the United States. The agreement was terminated due to the fact that the current structure of the Bank’s balance sheet and the related plans for obtaining medium- and long-term financing provide for issues of bonds mainly on the Polish and European markets (primarily in

EUR). Therefore, paid ratings issued by just one rating agency are sufficient for the execution of the Bank’s financial plans. Another important reason for terminating the agreement with Standard and Poor’s in 2015 was the need to reduce the Bank’s operating expenses, which was particularly important given the low interest rates and regulatory changes.

In connection with withdrawing its ratings, Standard and Poor’s performed a final analysis of the Bank’s current situation and its business environment and on 19 January 2016 confirmed the short-term rating ‘A-2’ and lowered the long-term rating from ‘BBB+’ to ‘BBB’. At the moment of withdrawal of the ratings, the outlook was stable. Standard and Poor’s informed that the Bank’s long-term rating was lowered due to the fact that the sovereign credit ratings of Poland were lowered on 15 January 2016. In its analysis, the agency stated that the Bank had a strong business position, adequate capital strength and liquidity in the perspective of the following 2 years, appropriate asset quality and a solid financing base, mainly based on retail deposits.

Rating of PKO Bank Hipoteczny SA

As at the end of 2016 PKO Bank Hipoteczny SA had the following ratings granted by Moody's Investors Service (paid rating):

  • long-term issuer’s rating Baa1 and short-term issuer rating Prime-2 with a stable outlook granted on 7 September 2015 and upheld on 16 May 2016,
  • long-term counterparty rating A3(cr) and short-term Prime-2(cr) granted on 7 September 2015 and upheld on 16 May 2016,
  • rating for mortgage bonds issued by PKO Bank Hipoteczny SA and denominated in PLN - Aa3 granted on 11 December 2015,
  • rating for mortgage bonds issued by PKO Bank Hipoteczny SA and denominated in EUR - Aa3 granted on 24 October 2016.

Rating of Kredobank SA

As at the end of December 2016 KREDOBANK SA had the following ratings granted by Standard & Poor’s on 26 April 2016 (paid):

  • long-term international scale credit rating - CCC+,
  • positive outlook,
  • short-term international scale credit rating - C,
  • rating on a Ukrainian scale – uaBB-.

At the same time, on 25 October 2016 KREDOBANK SA filed an application with Standard & Poor’s to withdraw the ratings (paid) granted to the Company. The Company’s rating was withdrawn by the Agency on 1 February 2017. Upon withdrawing the rating, on 1 February 2017 the Agency confirmed the previous rating of the Company.