S&P Global Ratings on Oct. 15 upgraded the long-term resolution counterparty ratings of Poland-based Bank Pekao SA and mBank SA to A- from BBB+ and affirmed both banks' A-2 short-term resolution counterparty ratings.
The rating agency also affirmed Bank Pekao's BBB+/A-2 long- and short-term issuer credit ratings, with a stable outlook on the long-term rating, and mBank's BBB+/A-2 long- and short-term issuer credit ratings, with a negative outlook on the long-term rating.
The upgrade follows a similar action on Poland. Given the improved sovereign risk environment, S&P said it now sees a lower relative default risk of certain Polish banks' senior liabilities that may be protected with an effective bail-in resolution process.
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