The agency said that the long-term deposit ratings of mBank have been downgraded and the outlook changed to negative from under review due to risks stemming from the legacy of Swiss franc loans at Polish lenders.
Moody's downgraded the long-term issuer ratings of the bank's mortgage unit mBank Hipoteczny and changed its outlook on its long- and short-term deposits ratings to negative from under review. An adviser to the European Union's top court last month disagreed with Polish borrowers with Swiss franc-denominated mortgages. Poland's regulator has warned of the possibility of costing Polish banks 100 billion zlotys $22.98 billion tail risks for mBank and Bank Millennium, as well as the opinion of the Advocate General of the European Court of Justice, which lifts the loss severity of current and future lawsuits related to Polish banks' legacy Swiss franc mortgage loans.