WARSAW, March 25 (Reuters) – Moody's has downgraded the long-term deposit rankings of mBank and adjusted the outlook to unfavourable from “underneath evaluate” citing dangers stemming from the legacy of Swiss franc loans at Polish lenders, the company mentioned.
Moody's has downgraded the long-term issuer rankings of the financial institution's mortgage unit mBank Hipoteczny and adjusted the outlook to unfavourable from “underneath evaluate”.
The company confirmed Financial institution Millennium's long- and short-term deposits rankings and adjusted the outlook on its long-term deposit rankings to unfavourable from “underneath evaluate”.
An adviser to the European Union's prime courtroom final month sided with Polish debtors with Swiss franc-denominated mortgages. Poland's regulator has warned the matter may value Polish banks 100 billion zlotys ($22.98 billion).
“Tail dangers for mBank and Financial institution Millennium have elevated considerably in mild of the opinion of the Advocate Common of the European Courtroom of Justice, which lifts the loss severity of present and future lawsuits associated to the Polish banks' legacy Swiss franc mortgage loans,” the company mentioned.
($1 = 4.3511 zlotys)
Reporting by Marek Strzelecki; enhancing by Jason Neely
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