Current Report of 09.08.2010

Legal grounds:

Art. 56 item 1 point 2 of the Act of 29 July 2005 on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading and Public Companies

The report:

The Management Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (the “Bank”) announces that on 9 August 2010 the rating agency Fitch Ratings Ltd. (the ”Fitch”) informed that the Fitch had maintained the rating given to the Bank.
Fitch maintained support rating at level 2 (the range from the highest 1 to 5) inter alia because of the fact that the “capitalisation is adequate”, with Fitch eligible capital ratio of 15.6% at end-Q110. Fitch indicated that “a takeover would be likely to bring about a deterioration of capital adequacy, due to a material amount of goodwill arising on acquisition. However, in early July 2010, PKO BP announced a PLN 5bn subordinated bond issue planned for Q410. Fitch understands that the proceeds would be used to support regulatory capitalisation if the bid is successful.” Fitch is also of the opinion that Bank’s track record of strong profitability bodes well for the restoration of bank’s core capital base.

Maintaining rating Fitch indicated that “due to PKO BP’s domestic importance, reflected in its dominant deposit market share and its 41% direct and 10% indirect ownership by the state, Fitch believes support from the state, if required, is highly probable”. In Fitch opinion “Although the government has indicated that it may decrease its stake in the bank, Fitch considers that the state would retain a significant minority stake (more than 25%)”.