Report No. 27/2016

Legal basis:

Art. 5 section 1 item 26 of the Ordinance of the Minister of Finance of 19 February 2009 on current and periodical information submitted by issuers of securities and the conditions of recognising information required by the law of a non-member state as equivalent.

Contents of the report:

The Management Board of PKO Bank Polski S.A. (“Bank”) informs that on 16 May 2016 Moody’s Investors Service (“Moody’s”) published a press release on the website www.moodys.com (“Release”), in which it informed about the affirming long- and short-term Bank’s deposits ratings at the level A2/P-1, affirming Bank’s debt rating at the level A3 and revision the outlook for long-term deposits ratings to “negative” from “stable”. At the same time Moody’s maintained “stable” outlook for debt rating. The revision of the long-term deposits ratings outlook follows a similar action on the Polish sovereign.

According to the Release:

• long-term deposits rating was affirmed at the level A2, outlook changed to “negative” from “stable”,
• short-term deposits rating was affirmed at the level P-1,
• senior unsecured debt rating was affirmed at the level A3, outlook maintained “stable”,
• senior unsecured MTN Program rating was affirmed at the level (P)A3,
• other short-term debt Program rating was affirmed at the level (P)P-2,
• counterparty risk assessment was affirmed at the level A2(cr)/P-1(cr).

Moody’s informs in Release that affirmation of deposits and debt ratings reflects Moody’s expectation of continuous moderate support from Polish authorities. Maintenance of the Bank’s ratings reflects its good asset quality and provisioning coverage, which have improved in recent years. At the same time Moody’s states that the Bank has been strengthening its capital levels.