Fitch to assign 'BB+' long-term rating for Bank Millennium's upcoming EUR bond issue

Fitch rating agency is to assign an expected 'BB+' long-term rating to Bank Millennium's upcoming issue of euro-denominated senior non-preferred bonds. The final assignment is dependent on the receipt of documents from the bank.

"Millennium's SNP debt is rated in line with the bank's Long-Term Issuer Default Rating (IDR), reflecting our expectations that the bank will use only SNP and more junior debt to meet its minimum requirement for own funds and eligible liabilities (MREL)," the rating agency wrote.

The proposed fixed-rate notes are expected to have a maturity in 2029, with a call option in 2028, and will constitute direct, unsecured and unconditional obligation of Millennium.

"The net proceeds from the notes will be used for activities as described in Millennium's green bond framework and are intended to qualify as eligible liabilities for the purposes of MREL," Fitch wrote.

"On the consolidated level, the bank must comply with MREL set at 20.78 percent (including the combined buffer requirement of 2.75 percent) of risk-weighted assets (RWAs) of the resolution group, which excludes its mortgage bank subsidiary," it added.

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