Assessment of financial credibility of PKO Bank Polski SA

Currently, the financial reliability ratings of PKO Bank Polski SA are awarded by three significant rating agencies:

  • rating agencies Moody’s Investors Service and Standard & Poor’s assign a rating to the Bank at a charge, in accordance with its own bank assessment procedure,
  • Fitch Ratings agency assigns a free-of-charge rating (not ordered by the Bank), on the basis of publicly available information, including primarily interim and annual reports, and information on the Bank made available during direct contacts of representatives of the agency with the Bank.

In 2012:

  • on 8 May 2012 Standard and Poor’s rating agency awarded the Bank the following rating, at the Bank’s commission:
    • the Bank’s long-term credit rating at the ‘A-’ level, with stable perspective,
    • the Bank’s short-term credit rating at the ‘A-2’ level, with stable perspective,
  • on 28 June 2012 Moody’s Investors Service Ltd. rating agency (‘Moody’s’) reduced the potential rating for the subordinated debt of PKO Bank Polski SA under the Eurobond issue programme (MTN) to (P)Baa3 from (P)A3 in connection with the withdrawal of Moody’s of the assumption relating to the systemic support for this class of debt.
    The decrease was the result of a review initiated in November 2011 and related to reassessing the assumption as to the systemic support of the subordinated debt of a group of European banks, which led Moody’s to the conclusion that there will be no systemic support for this class of debt. This conclusion shows that Poland is perceived by Moody’s in a manner similar to other European countries, where the systemic support for subordinated debt may not be sufficiently predictable any more to support the rating of instruments used to reinforce capital.
  • on 17 September 2012 Moody’s Service agency informed about the changed outlook from ‘stable’ to ‘negative’ on Bank’s deposit long-term ratings at the ‘A2’ level and Bank’s debt liabilities long-term ratings at the ‘A2’ level.
    In the grounds of conducted change of the outlook for ’A2’ ratings agency analysts informed that the change in outlook reflects a reduction in the State Treasury’s ownership of the Bank and the State Treasury’s medium-term plans to reduce its indirect shareholding in the Bank.
    The analysts working for the agency added that the ratings of PKO Bank Polski SA had three-notch uplift that was among the highest in the region. Such high uplift results from the fact that in Moody's opinion, it is very likely that the Bank will receive support from its main shareholders if needed, and the fact that the Bank plays an important role in the Polish banking and payment system.

Ratings as at 31 December 2012

Rating with a charge
Moody’s Investors Service
Long-term rating for deposits A2 with negative perspective
Short-term rating for deposits Prime-1
Financial strength C- with negative perspective
Standard and Poor’s
Long-term loan rating of the Bank A- with a stable perspective
Short-term loan rating of the Bank A-2 with a stable perspective
Rating not requested by the Bank
Fitch Ratings
Support Rating 2

As at the end of 2012, KREDOBANK SA had the following rating granted by the international agency Standard & Poor’s:

  • long-term credit rating on the international scale – ’B-’,
  • forecast - ’Stable’,
  • short-term credit rating on the international scale - ’C’,
  • rating on the Ukrainian scale - ’uaBBB-’.
The rating level and forecasts of KREDOBANK SA are identical with the rating and forecasts of Ukraine as Country.