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    Excellent progress in mBank’s ratings: S&P, Moody’s and Fitch have upgraded the bank’s ratings. Recognition of effective risk reduction in the FX loan portfolio, rising profitability and robust capital position.
    Excellent progress in mBank’s ratings: S&P, Moody’s and Fitch have upgraded the bank’s ratings. Recognition of effective risk reduction in the FX loan portfolio, rising profitability and robust capital position.
    News

    Excellent progress in mBank’s ratings: S&P, Moody’s and Fitch have upgraded the bank’s ratings. Recognition of effective risk reduction in the FX loan portfolio, rising profitability and robust capital position.

    22 April 2025

    mBank strengthens its position in the financial market. All three global rating agencies, S&P Global Ratings, Moody’s Ratings and Fitch Ratings, have upgraded mBank’s ratings in less than two months. The upgrades reflect significant progress in reducing the risk related to CHF loans, increasing profitability and strengthening of the capital base. The decisions confirm mBank’s solid position and its ability to continue on its growth path.

    S&P Global Ratings upgraded mBank’s long-term credit rating from ‘BBB’ to ‘BBB+’. Moody’s Ratings raised mBank’s long-term deposit rating from ‘Baa1’ to ‘A3’ and mBank Hipoteczny’s long-term credit rating from ‘Baa2’ to ‘Baa1’. Fitch upgraded mBank’s long-term credit rating from ‘BBB-’ to ‘BBB’.
    S&P and Fitch also upgraded their ratings for mBank-issued senior preferred and senior non-preferred debt instruments.  Fitch upgraded its ratings by two notches: (i)  from ‘BBB-’ to ‘BBB+’ for senior preferred debt, and (ii) from ‘BB+’ to ‘BBB’ for senior non-preferred debt.
    The upgrade of the bank’s ratings by several global agencies in such a short period is a unique market development.  All three agencies emphasised that the measures taken by mBank to reduce the risk associated with CHF mortgages are effective, which has a significant impact on the stability and predictability of the bank’s financial results.

    mBank is gaining momentum. There are three reasons why the move by the rating agencies is important to us. First, higher credit ratings mean lower risk, and consequently, lower funding costs. Second, the ratings confirm that mBank is a stable and trustworthy business partner. Third, they show that our recent efforts towards mitigating the risk posed by CHF mortgages and restoring capital levels proved to be highly effective. The upgrade of all key credit ratings within less than two months shows that in the run-up to announcing its new strategy, the bank is ready to deliver the expected growth. I am fully confident that the measures we have taken allow us to be optimistic about the future.

    Cezary Kocik, mBank's CEO

    The rating agencies focused especially on:
    • Reduced risk of CHF mortgages: All three agencies emphasised the major progress made by mBank in reducing the risk associated with CHF mortgages. Moody’s highlighted that from 2018 to the end of 2024 mBank booked over PLN 16.5 billion in legal risk provisions, including approx. PLN 12 billion over the last three years. S&P Global Ratings assessed that mBank “has significantly reduced legal risk” connected with this loan portfolio. According to Fitch, there has been “a substantial and durable reduction in legal risks associated with legacy foreign-currency mortgage loans” and consequently, this risk no longer has a negative impact on mBank’s credit profile assessment. The number of active CHF contracts has been systematically falling. At the end of 2024, there were 16,400 active agreements left out of 85,500 agreements we signed with clients. To date, the bank has signed over 26,800 settlements with borrowers.
    • Improved profitability: S&P Global Ratings noticed the improvement in mBank’s profitability, with a PLN 2.2 billion net profit posted in 2024. Moody’s Ratings expects the bank’s profit to continue on the upward trend and the legal risk costs to drop further. According to Fitch, the reduction in legal risk costs will make mBank’s profit less volatile.
    • Robust capital base: The rating agencies positively assess mBank’s stronger capital levels. Moody’s Ratings noted the successful Additional Tier 1 issuance with a nominal value of  PLN 1.5 billion, which improved the Group’s Tier 1 Capital Ratio to 14.5% at the end of 2024.
    The rating upgrade by three largest agencies is a recognition of mBank’s financial strength, effective risk management and growth prospects. The bank has been consistent in implementing its strategy that is beneficial to both clients and shareholders and solidifies its leading position in the Polish banking market.

    What are ratings and why are they important to the bank?

    Credit ratings reflect financial credibility and are issued by independent rating agencies.  They measure an institution’s ability to meet its financial obligations, such as debt repayment.  The higher the rating, the greater the certainty that the bank is stable and secure, which is crucial for obtaining market financing, building client and investor trust, and ensuring overall perception of the bank as a solid financial partner.