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.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings document referred to in this news brief can be found in the sources section.