Current report No. 9/2020

14.04.2020

Information on Bank ratings

In reference to current report No 54/2019 of 15 October 2019, Getin Noble Bank S.A. (the “Bank”) informs that on 14 April 2020, the Fitch Ratings agency (the “Agency”) published information on the Bank’s rating.
In a communiqué, the Agency announced that it had downgraded the Bank's ratings:

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

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

  • National Short-Term Rating at B(pol)
  • Support Rating at the level of: “5”
  • Support Rating Floor at the level of: “No Floor.”

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

As the main reasons for the decision to change the ratings of the Bank, the Agency specified: a breach of the level of the capital standard (the total capital ratio) referred to in Article 92 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 (“CRR”), increased by an additional requirement in respect of own funds above the value resulting from the requirements calculated in accordance with the detailed principles set out in the CRR, as referred to in Article 138(1)(2a) of the Act of 29 August 1997 (Banking Law), and the reporting of yet another financial loss.

In the grounds for its decision, the Agency stated that the breach of the capital standard referred to above had been a result of an increase in the value of risk weighted assets relating directly to the appreciation of Swiss franc and a negative revaluation of the portfolio of Polish treasury bonds caused by an increase in their yield.

In view of the information provided in current report No 7/2020 of 3 April 2020, the Bank points out that the macro scale of disturbances resulting from the spread of COVID-19 translates to an unprecedented volatility of the financial markets, including a volatility of currency rates and profitability of financial instruments. The scale of this volatility is of such significance that in the near future it may be decisive in respect of the high variability of the level of the capital ratio of the Bank.

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