Rating

Issuer rating

Since 2004, PZU and PZU Życie have undergone regular reviews by the S&P Global Ratings (S&P) rating agency. The rating assigned to PZU and PZU Życie results from an analysis of the financial information, competitive position, management and corporate strategy as well as country financial situation. It also includes a rating perspective (an outlook), namely, an assessment of the future position of the company in the event specific circumstances occur. As of 25 March 2014, PZU’s rating is one notch above Poland’s rating for foreign currency- denominated debt.

On 27 October 2017, the S&P Global Ratings agency upgraded the rating outlook for PZU and its main subsidiaries from negative to stable. PZU’s financial strength and credit rating stayed at A-.

On 4 December 2017, S&P Global Ratings affirmed the financial strength and credit strength ratings for PZU and its main subsidiaries at “A-”. The outlook remained unchanged (negative). The rating was affirmed in connection with PZU’s announcement of a PLN 2.25 billion subordinated debt issue on 30 June 2017.

On 28 March 2017, S&P Global Ratings affirmed the financial strength and credit strength ratings for PZU and its main subsidiaries at “A-”. The outlook remained unchanged (negative).

Sovereign rating

On Oct. 20, 2017, S&P Global Ratings affirmed its ‚BBB+/A-2’ long- and short-term foreign currency sovereign credit ratings and ‚A-/A-2’ long- and short-term local currency sovereign credit ratings on Poland.

Poland’s rating

PZU rating

Eurobond rating

On 20 June 2014, Standard & Poor’s awarded a rating of A- for unsecured debt for Eurobonds issued by PZU Finance AB. In October 2015, PZU issued bonds in the amount of EUR 350 million. These bonds have been assimilated and now form a single series with the “tap” bonds with the nominal value of EUR 500 m issued by PZU Finance AB (publ) on 3 July 2014. On 12 October 2015, the analysts from S&P set the rating for the new issue also at A-. On 21 January 2016, in connection with the reduction of PZU’s rating (following the reduction of Poland’s rating), the rating for the Eurobonds issued by PZU Finance AB (publ.) was also downgraded to BBB+. That is still an “investment-grade rating”.

Rating of the Eurobonds issued by PZU Finance AB (publ.)

Alior Bank’s rating

On 5 September 2013, Fitch Ratings Ltd. awarded an entity rating to Alior Bank S.A. at BB with a positive outlook. The rating was maintained at an unchanged level, in line with the agency’s decision of 16 February 2017.

On 5 February 2018, Fitch Ratings Ltd. affirmed the entity rating for Alior Bank S.A. at BB, while it changed the outlook from stable to positive.

Pekao rating

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.

Bank Pekao has the highest viability rating awarded Fitch Ratings, the highest independent rating awarded by S&P Global Ratings, the highest Baseline Credit Assessment rating and short- and long-term counterparty credit risk ratings awarded by Moody’s Investors Service (“Moody’s agency”) among the banks rated by these agencies in Poland.

On 20 October 2017, Fitch downgraded Pekao’s long-term rating outlook from stable to negative and increased its support rating from 2 to 5. According to the agency’s release, the change of Pekao’s outlook reflects the expectations of a gradual decrease in capital ratios. The change in the support level is an effect of changes in the shareholder structure. Those were the sole changes to Pekao’s ratings as presented below.