Report No. 32/2015

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 21 May 2015 Moody’s Investors Service (“Moody’s”) published a press release on the website www.moodys.com (“Release”), in which it informed about the change of Bank’s ratings as a result of completing the review of ratings assigned to the banks in Poland (the Bank informed about the start of review in the report No. 12/2015). The review resulted from the adoption of new methodology issued by this agency on 16 March 2015.

According to the Release:

• deposit rating was maintained at the level A2/P -1,

• debt rating was decreased from A2/(P)P-1 to A3/(P)P-2,

• counterparty risk assessment was established at the level A2(cr)/P-1(cr),

• rating outlook was raised from ”negative” to “stable”.

The outlook raising and maintaining of the Bank’s ratings result from the supportive macroeconomic environment of Poland and relevant main indicators of the Bank, including the improvement of capital ratios, the improvement of asset portfolio quality, and maintaining good profitability.

The adjustment of debt rating results from the fact that Moody’s took into account a lower probability of obtaining state support for the Bank if the Bank ceases to repay its liabilities. In Moody’s assessment, Poland as a EU member state will implement the European Union Bank Recovery and Resolution Directive (BRRD) which causes, in agency’s opinion, the necessity to change the probability of providing state support to the Bank from very high to moderate.

According to the information placed on the website of the Government Legislative Centre www.rcl.gov.pl, the draft Act on Banking Guarantee Fund, deposit guarantee system and compulsory restructuring which will implement the provisions of the EU Bank Recovery and Resolution Directive (BRRD) is in the process of legislative consultations.