Fitch Ratings places Santander BP lender on rating watch negative on support revision

"Fitch Ratings has placed Santander Bank Polska S.A.'s (SBP) Long-Term Issuer Default Rating (IDR) and Shareholder Support Rating (SSR) of 'A-' and 'a-', respectively, on Rating Watch Negative (RWN)," the agency stated.

Fitch stated that it has also placed Santander BP's Long-Term National Rating of AA+(pol) on RWN watch list to align with the similar action on the Long-Term IDR.

"The rating action follows Erste Group Bank AG (Erste, A/Stable) announcement that it has agreed with Banco Santander SA (A/Stable) to acquire a controlling 49 percent stake in SBP. The RWN reflects potential negative impact of the ownership change on the ability and propensity of support for SBP," the agency wrote.

"SBP is expected to be fully consolidated in Erste's group accounts. The transaction is likely to close in the fourth quarter of 2025, subject to regulatory approvals. We would resolve the RWN on completion of transaction, which may take longer than six months," it added.

Fitch pointed out that Santander Bank Polska's 'bbb' Viability Rating, Short-Term IDR and Short-Term National Rating are unaffected by this rating action.

"Unless noted below, the key rating drivers for SBP are those outlined in our Rating Action Commentary "Fitch Affirms Santander BP at 'BBB+'; Outlook Stable" published in July 2024," the agency stated.

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