According to S&P, the bank’s ratings assesments reflect the Bank’s limited exposure to legacy CHF-denominated loans, which puts the bank in a comfortable position regarding this legal risk. Also, considering its strong capitalization, Pekao might actually benefit from competitors’ capital constraints and gain market share in the domestic corporate and retail business should loan demand pick up in the future. In addition, S&P considers that Pekao’s strong capital and robust profitability provide comfortable buffers to absorb costs from potentially adverse scenarios. Its affiliation with its largest single investor, state-owned insurance company PZU, benefits its franchise in the domestic corporate banking business and also supports the placement of MREL instruments with domestic investors
Bank in 2023
Financial credibility ratings
Bank Pekao S.A. financial credibility ratings
Bank Pekao S.A. co-operates with three leading credit rating agencies: Fitch Ratings (the Fitch), S&P Global Ratings (S&P), and Moody’s Investors Service. In the case of the first two agencies, the ratings are provided on a solicited basis under relevant agreements and with respect to Moody’s Investors Service the ratings are unsolicited and they are based on publicly available information and review meetings.
As of 31 December 2023, Bank Pekao S.A. had assigned following financial credibility ratings:
On 27 June 2023 S&P informed the bank about maintaining the ratings of the bank at the current level with the stable outlook and assigning long-term rating of BBB+ for the issue of Senior Preferred series SP1 bonds.
On 28 September 2023 Fitch informed the Bank about maintaining the Bank Pekao S.A.’s Long-Term Issuer Default Rating (IDR) at 'BBB’ with “Stable” outlook and Viability Rating (VR) at 'bbb’.
According to Fitch, Bank Pekao S.A.’s ratings reflect its strong domestic franchise, and its seasoned and stable business model. This, combined with a moderate risk appetite, allows the bank to generate fairly stable returns, while maintaining reasonable capitalisation, and strong funding and liquidity. This is despite it being exposed to risks in the domestic operating environment, including government intervention risk. Bank Pekao S.A.’s National Ratings reflect the bank’s creditworthiness relative to that of other issuers in Poland.
On 14 November 2023 S&P informed the bank about maintaining the ratings of the bank at the current level, revising the outlook from stable to positive and assigning long-term rating of BBB for the issue of Senior Non-Preferred series ESN1 bonds.
According to S&P, the positive outlook reflects the view that Pekao could opportunistically issue further substantial amounts of Senior Non-Preferred instruments over the next 12-24 months, which could lead S&P to raise the issuer credit rating by one notch based on this extraordinary support.
Pekao Bank Hipoteczny S.A. financial credibility ratings
Pekao Bank Hipoteczny S.A. cooperates with the international rating agency Fitch Ratings.
Fitch emphasizes that the rating of Pekao Bank Hipoteczny S.A. is related to the rating of Bank Pekao S.A., which holds 100% of the Bank’s shares. Fitch believes in the rating of Pekao Bank Hipoteczny S.A. is influenced by the level of integration with the parent company and the scale of operations as well as the Bank’s capital.
At the end of December 2023, the long-term rating of Pekao Bank Hipoteczny S.A., assigned by the Fitch rating agency, was at the BBB level with a „Stable” outlook. Covered bonds issued by Pekao Bank Hipoteczny S.A. had a „BBB+” rating.
A high rating for the letters means that Pekao Bank Hipoteczny S.A. has the ability to issue securities with a high level of security and obtain long-term funds for lending activities.