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 financial data, competitive position, management and corporate strategy of both companies as well as the sovereign rating. It also includes a ratings outlook, or an assessment of the Company’s future position in the event that specific circumstances occur.

On 6 April 2020, S&P Global Ratings (S&P) changed the ratings outlook for the Company from positive to stable. PZU’s financial strength and credit rating remained at A-.

The rating outlook has changed as a result of the deterioration in financial and business conditions in Poland due to the outbreak of the COVID-19 pandemic. According to the agency’s analysts, this may affect the PZU Group’s business; in particular, it may lead to a lower contribution from banking activity. At the same time, S&P issued a forecast that the PZU Group’s position will remain stable. The viewpoint of the agency’s analysts is that the PZU Group will maintain its leading business position in Poland, a strong capital position and a stable result on insurance activity, whereby it will be capable of withstanding any further potential deterioration in the business environment.

Sovereign rating

On 2 October 2020, S&P announced its decision to affirm Poland’s rating at A- and A-2 for long- and short-term liabilities in foreign currencies, respectively, and at A and A-1 for long- and short-term liabilities in the domestic currency, respectively. The rating outlook remained stable.

S&P pointed to the diversified economy, qualified workforce, manageable levels of public and private debt, the robust position of the external balance sheet, the cautiously pursued monetary policy with a stable banking system and the relatively deep domestic market as the bases for retaining its rating.

In S&P’s opinion, the pandemic will exert an adverse impact on the Polish economy, resulting in a 3.4% decline in real GDP in 2020. At the same time, S&P analysts indicated that this decline will be the lowest across the EU. It will be achieved owing to the relatively diversified and competitive export base, dependent to a lesser degree on the automotive sector and tourism, and also the usage of substantial funds under the extraordinary policy pursued to soften the adverse effects of the COVID-19 pandemic.

According to the agency, the fiscal means employed to respond to the crisis, as some of the highest in Central and Eastern Europe, combined with the measures taken at the EU level and the standard transfers of EU funds supported by domestic demand and the resurgence in the eurozone, may contribute to further economic growth in Poland, which S&P forecasts to be 4.5% in 2021 and 3.6% in 2022¹.

Poland’s rating

Source: S&P Global Rating

Rating PZU

Source: S&P Global 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.

Fitch Ratings and S&P Global Ratings prepare their ratings at the Bank’s request under the contracts entered into between the Bank and these agencies. Because Moody’s Investors Service has no contract with Bank Pekao, the agency prepares its ratings based on publicly available information and review meetings.

On 14 April 2020, Fitch Ratings announced that, as a consequence of the COVID-19 pandemic, the Bank’s ratings outlooks in the form of “long-term IDR” and “domestic longterm rating” changed from stable to negative. At the same time, the agency upheld all ratings for Pekao at their previous levels.

On 8 April 2020, S&P Global Ratings changed the ratings outlook for the Bank from positive to stable. At the same time, the agency upheld Pekao’s long- and short-term ratings at their previous levels.

On 7 January 2021, Moody’s Investors Service lowered its individual “Baseline Credit Assessment” rating from “baa1” to “baa2” and its long-term counterparty risk rating from “A1” to “A2”. The long-term credit risk assessment was lowered from “A1(cr)” to “A2(cr)”.

Bank Pekao's Rating

Alior Bank’s rating

On 14 April 2020, Fitch Ratings lowered Alior Bank’s ratings outlook from stable to negative. On 17 December 2020, the agency confirmed the ratings it had granted previously.

On 27 April 2020, S&P Global Ratings lowered Alior Bank’s ratings outlook from stable to negative. On 21 January 2021, the agency confirmed the ratings it had granted previously.

¹ https://www.gov.pl/web/finanse/sp-potwierdza-dotychczasowy-rating-polski4