Information on Bank ratings

Getin Noble Bank S.A. (the “Bank”) informs that on 23 February 2021, the Fitch Ratings agency (the “Agency”) published information on the Bank’s rating.

In its communiqué, the Agency announced that it had downgraded the Bank’s ratings:

• Long-Term Issuer Default Rating (IDR) from: CCC+ to CCC
• National Long-Term Rating from: B+(pol) to B(pol)
• VR (Viability Rating) from: ccc+ to ccc

At the same time, the Agency confirmed that the current level was maintained for:

• Short-Term Issuer Default Rating (IDR) at: C
• National Short-Term Rating at: B(pol)
• Support Rating at: “5”
• Support Rating Floor at: “No Floor”

In its communiqué, the Agency also informed that the below ratings had been placed on the Rating Watch Negative list:

• Long-Term Issuer Default Rating (IDR)
• National Long-Term Rating
• National Short-Term Rating
• VR (Viability Rating)

Details of the Bank’s rating are available at www.fitchratings.com.

The Agency’s decision to change the rating is a consequence of the Bank’s announcement of falling below the capital requirement, i.e., the total capital ratio (TCR) referred to in Article 92(1)(c) 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 as a result of, among others, the recognition of an additional portfolio reserve for legal risk associated with 110-million-PLN mortgage and housing loan agreements indexed to CHF, or the recognition of another 222-million-PLN tranche of amortisation of the impact of IFRS 9 implementation in the Bank’s own funds. The Bank informed about the above in current report No 4/2021 of 15 February 2021.

The Bank points out that the event of a default on the capital requirement, which became the basis for the Agency’s decision referred to herein, was caused not only by the aforementioned activities, but also by a number of external factors, which were independent of the Bank’s operations. These include the events which occurred throughout 2020, resulting from the deterioration of market conditions due to the spread of the COVID-19 coronavirus pandemic, including, in particular, interest rate reductions, which reduced the Bank’s income potential, as well as appreciation of the Swiss franc exchange rate, visible compared to the level in the analogous period of the previous year, which directly translated into an increase in the valuation of some risk-weighted assets held by the Bank.

The Bank emphasises that it monitors the current economic situation on an ongoing basis and makes decisions aimed to ensure the security and safety of all of its stakeholders, in particular its clients. The Bank takes active measures to adapt its functions to the changing environment as best as possible and warrants that it is going to implement any measures necessary to improve capital ratios.

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