Moody's affirms PKO BP's mortgage unit's A3/P-2 rating, upholds stable outlook

Moody's rating agency has affirmed Poland's largest lender by assets PKO BP's mortgage unit PKO BH's A3/P-2 issuer ratings; the bank's CRR and CR assessment has been upgraded to A1 from A2 previously, Moody's said in a statement.


"The affirmation of PKO BH's A3/P-2 long- and short-term issuer ratings and the upgrade of its long-term Counterparty Risk Ratings (CRR) to A1 from A2 and its long-term Counterparty Risk (CR) Assessments to A1(cr) from A2(cr) mirror the corresponding rating changes of its parent bank, reflecting our unchanged view that PKO BP will treat the liabilities of its mortgage bank equally to its own and will not prioritize the repayment of its own liabilities over those of the mortgage bank," the agency wrote.

"Our view is driven by the high levels of operational integration between the mortgage bank and its parent, PKO BP's public commitment to the Polish authorities to ensure that the mortgage bank's liquidity and capital are always at adequate levels, and the mortgage bank's relatively small size and the high reputational risk to the parent bank if it were to allow the mortgage bank to fail," it added.

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