Information on the Bank's ratings

Getin Noble Bank S.A. (the “Bank”) informs that on 2 May 2022 the Fitch Ratings agency (“the Agency”) published the information on the Bank's ratings.

The Agency confirmed that the following ratings have been maintained at their current levels:

• Long-Term Issuer Default Rating (IDR) at the level of:  CCC
• National Long-Term Rating at the level of: B (pol)
• Short-Term Issuer Default Rating (IDR) at the level of: C
• National Short-Term Rating at the level of: B (pol)

The Agency also announced in its information that these assessments had been included in the Rating Watch Evolving list without indicating the direction of change. The National Long-Term Rating has been removed from the Rating Watch Negative list

At the same time, the Agency informed about the reduction of the Bank's:

• Individual VR (Viability Rating) score from cc to f

Following the update of the Bank Rating Criteria on 12 November 2021, the Agency advised of the withdrawal of the Support Rating and the minimum Support Rating Floor for the Bank. At the same time, the Agency gave the Bank a new Government Support Rating (GSR) at the level of: no support.

The Agency's decision to change the rating is a consequence of the announcement by the Bank of a decrease in its Common Equity Tier 1 capital ratio below the threshold referred to in Article 92(1)(a) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.

The Bank points out that the incident of violating the level of the ratio, which became the basis for the said decision of the Agency, was due to external factors, independent of the Bank's operating activity, i.e. in the evident appreciation of the Swiss franc exchange rate observed for a long time and unfavourable changes in market valuations of treasury securities held by the Bank, and as a result of creating an additional portfolio provision for legal risk related to CHF-indexed mortgage and housing loan agreements on 25 April 2022.

The Bank emphasises that it monitors the current economic situation on an ongoing basis and makes decisions aimed to adapt, in the best possible way, its functioning to the constantly changing environment and to ensure the security and safety of all of its stakeholders, in particular its clients. The Bank takes active measures to adapt, in the best possible way, its functioning to the constantly changing environment and warrants that it is implementing all measures necessary to improve capital ratios.
In addition, the Bank points out that on 28 April this year, the Bank's Management Board submitted a new recovery plan for the years 2022-2027 to the Polish Financial Supervision Authority, which contains a package of comprehensive actions aimed at rebuilding the Bank's capital ratios. Apart from the capital challenges and the legal risk of the CHF-indexed loan portfolio, it provides, inter alia, details of leveraging the opportunities related to functioning in the environment of increased interest rates and the digitalisation of banking services. In the opinion of the Bank's Management Board, the new Recovery Plan prepared considers the expectations of the Polish Financial Supervision Authority included in the decision issued last December.

The Bank informed about the above events in current reports No 8/2022 and 9/2022 of 29 April 2022.

Legal basis: Article 17(1) of Regulation No 596/2014 of the European Parliament and of the Council of 16 April 2014 (MAR Regulation).