Fitch: Bank Ochrony Srodowiska debt A(pol)

Fitch Ratings said it assigned a national long-term rating of A(pol) to Bank Ochrony Srodowiska, along with a national short-term rating of F1(pol).

The outlook is negative.

Fitch also said it assigned a national long-term rating of A(pol) to the bank’s 2 billion in Polish zloty senior unsecured bond program, along with a national short-term rating of F1(pol).

The agency also assigned a national long-term rating of BBB-(pol) to the bank’s 83 million in Polish zloty subordinated debt issued in September 2014.

The bank also has a long-term issuer default rating of BBB, short-term issuer default rating of F3 and viability rating of BB.

There also is a BBB rating on the €250 million long-term senior unsecured eurobonds issued by BOS Finance AB.

The ratings reflect the high probability of support from the Polish sovereign in case of need, Fitch said.

This view is based on the state’s indirect majority shareholding in the bank, the bank’s important role in financing the country’s environment protection projects and potential reputational damage for the state should the bank default, the agency said.

The ratings also consider the bank’s limited systemic importance, absence of any direct state participation in the bank’s capital and rather narrow policy role, Fitch said.

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