30 Oct 2018 11:19
UNOFFICIAL TRANSLATION
Report 24/2018K: Correction of the Report no. 24/2018: Fitch Ratings update of Bank Pekao ratings and outlook
Bank Polska Kasa Opieki Spółka Akcyjna ("Bank") submits the revised content of the current report No. 24/2018 dated 17 October 2018 (the "Report"), supplemented by detailed repeated justification of Bank's ratings downgrade made by Fitch Ratings included in press release of Fitch Ratings. In connection with the above, the following statement in the Report:
"The Long-Term IDR and VR of the Bank were changed as a result of stabilization of the capital position at the level commensurate with the domestic operating environment. The Bank maintains strong capital position measured on a regulatory and Fitch-based methodology."
was replaced by the following statement in the correction of the Report:
"The downgrade of Bank's Long-Term IDR is driven by the downgrade of the VR. The downgrade of the Bank's VR reflects the decline of the Bank's core capital ratio measured within Fitch methodology to a level, which is broadly similar to peers also measured by Fitch methodology. In Fitch opinion the level of Bank's capital measured by Fitch methodology is no longer sufficient to support Bank's VR being above most of those peers'. Simultaneously, Fitch highlighted that its assessment of the Bank's regulatory as well as Fitch-based capital position remains strong."
Below the Bank provides the correction of the Report:
Bank Polska Kasa Opieki Spółka Akcyjna ("Bank") informs that on 17 October 2018 the rating agency Fitch Ratings ("Fitch") informed the Bank about the update of Bank's Long-Term IDR and Viability Ratings and the change of the Long-Term IDR Outlook from Negative to Stable.
As a result of the review, the following rating actions were taken by Fitch:- Change of Long-Term IDR: from "A-" to "BBB+"- Change of Outlook: from "Negative" to "Stable"- Change of Viability Rating: from "a-" to "bbb+"- Affirmed Short-term IDR: "F2"- Affirmed Support Rating: "5"- Affirmed Support Rating Floor: "No Floor"
The downgrade of Bank's Long-Term IDR is driven by the downgrade of the VR. The downgrade of the Bank's VR reflects the decline of the Bank's core capital ratio measured within Fitch methodology to a level, which is broadly similar to peers also measured by Fitch methodology. In Fitch opinion the level of Bank's capital measured by Fitch methodology is no longer sufficient to support Bank's VR being above most of those peers'. Simultaneously, Fitch highlighted that its assessment of the Bank's regulatory as well as Fitch-based capital position remains strong.
In Fitch opinion the IDRs of the Bank are driven by the Bank's intrinsic strength, which is reflected in its VR. According to Fitch, the Bank's rating strengths include well-established domestic market franchise, stable business model, conservative risk appetite, strong capitalisation, sound asset quality, solid profitability and robust funding and liquidity.
After this decision Bank's rating are as follows:Long-term IDR: "BBB+";Outlook: "Stable";Short-term IDR: "F2";Viability Rating: "bbb+";Support Rating: "5"Support Rating Floor: "No Floor"
Legal basis: Article 17 (1) of MAR - confidential information