Rating

Issuer rating

Since 2004, PZU and PZU Życie have been subject to regular reviews by the rating agency of S&P Global Ratings (S&P). The rating assigned to PZU and PZU Życie results from an analysis of the financial data, competitive position, management and corporate strategy as well as the country’s financial standing. It also includes a rating perspective (an outlook), namely, an assessment of the future rating of the company in the event specific circumstances occur.

On 14 June 2019, S&P Global Ratings raised PZU’s rating outlook from stable to positive (this rating was affirmed most recently on 8 October 2019). PZU’s financial strength and credit rating remained at A-. The S&P analysts decided that the PZU Group has demonstrated its capacity to generate good financial results, both historically and in comparison to its competitors. They also emphasized the improving risk management practices resulting in greater capital resilience and high capital management discipline. The agency’s report also refers to PZU’s excellent position on the insurance, banking and asset management market, which will allow it to use this advantage in order to continue generating good financial results, strengthening the fundamentals and improving its position in the entire sector.

At the same time, S&P stated that the rating may increase over the period of the next 12-18 months, provided that stability of management and good financial results are maintained (including high profitability in non-life and life insurance). Other conditions included maintenance of stable level of risk in the PZU Group and solvency at least at the level of AA and the capacity to pass the stress test (S&P).

Sovereign rating

On 12 April 2019, S&P announced its decision to affirm Poland’s rating at A-/A-2 for long- and short-term liabilities in foreign currency, respectively, and at A/A-1 for long- and short-term liabilities in the domestic currency, respectively. The rating outlook remained stable.

When justifying the affirmation of the rating, S&P pointed to, among other things, diversified economy, qualified employees, manageable levels of public and private debt and membership in the European Union. The agency also noted the good fiscal position of the state budget in 2018. As one of the reasons for the low budget deficit, it pointed to the high growth of tax revenue that resulted, among others, from the good situation on the labor market. The agency also noted the significant progress in the closing of the VAT gap. S&P projects the deficit of the general government sector to GDP at less than 3% in 2019-2022, at 1.5% in 2019 and 2.6% subsequently. According to the agency, the ratio of debt of the general government sector to GDP in 2019-2022 will be kept below 50%.¹

Poland’s rating

PZU rating

Bank Pekao’s financial creditworthiness ratings

Bank Pekao cooperates with three leading rating agencies: Fitch Ratings, S&P Global Ratings and Moody’s Investors Service. In the case of the first two agencies, the ratings are prepared upon the Bank’s commission based on contracts. The Bank however has signed no agreement with Moody’s Investors Service and the rating process is conducted on the basis of publicly available information and review meetings.

On 31 December 2019 Bank Pekao’s financial creditworthiness ratings were as follows:

Pekao rating

On 17 June 2019 the S&P Global Ratings agency (“S&P”) raised Pekao’s rating outlook from stable to positive and raised its standalone credit profile from “bbb” to “bbb+”. The long-term rating stayed at the same level of BBB+.

Alior Bank’s rating

On 30 January 2019 Fitch Ratings lowered Alior Bank’s ratings outlook from positive to stable. On 27 January 2020 Fitch Ratings Ltd. upheld the Bank’s long-term rating in foreign currency at the level of ‘BB’ and raised its short-term domestic rating from ‘F2(pol)’ to ‘F1(pol)’ in connection with the improvement in the evaluation of the Bank’s funding composition and liquidity.

On 16 January 2019 S&P Global Ratings assigned Alior Bank a Long-Term Issuer Credit Rating of ‘BB’ with a stable outlook and a Short-Term Issuer Credit Rating of ‘B’.

¹ https://www.gov.pl/web/finanse/sp-potwierdza-dotychczasowy-rating-polski