Rating

Highlights 2017

Equities and Bonds

Foreign investors as percentage held in the share capital 34.4%
Foreign investors as percentage held in the share capital 34.4%
Dividend yield for PZU shares at the end of 2017: 3.32% (PLN 1.40 per share)
Dividend yield for PZU shares at the end of 2017: 3.32% (PLN 1.40 per share)
Rating (S&P Global Ratings): A- with a stable outlook
Rating (S&P Global Ratings): A- with a stable outlook
Average daily trading value of PZU shares: PLN 75.6 million
Average daily trading value of PZU shares: PLN 75.6 million
Share of OFE and TFI in PZU shareholding: 18.0% and 4.4%
Share of OFE and TFI in PZU shareholding: 18.0% and 4.4%
P/E (price/earnings): 12.51; P/BV (price/book value): 2.49
P/E (price/earnings): 12.51; P/BV (price/book value): 2.49
Reference Areas:
Health
Investments
Banking
Best Pratices in PZU

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

CurrentlyPreviously
CountryRating and outlookUpdated onRating and outlookUpdated on
Rzeczpospolita Polska    
Credit rating (long-term in local currency)A- /Stable/2 December 2016A- /Negative/15 January 2016
Credit rating (long-term in foreign currency)BBB+ /Stable/2 December 2016BBB+ /Negative/15 January 2016
Credit rating (short-term in local currency)A-22 December 2016A-215 January 2016
Credit rating (short-term in foreign currency)A-22 December 2016A-215 January 2016
    

PZU rating

 CurrentlyPreviously
Company nameRating and outlookUpdated onRating and outlookUpdated on
PZU    
Financial strength ratingA- /Stable/27 October 2017A- /Negative/31 October 2016
Credit ratingA- /Stable/27 October 2017A- /Negative/31 October 2016
PZU Życie    
Financial strength ratingA- /Stable/27 October 2017A- /Negative/31 October 2016
Credit ratingA- /Stable/27 October 2017A- /Negative/31 October 2016
    

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.)

 CurrentlyPreviously
 Rating and outlookUpdated onRating and outlookUpdated on
EUR 350 million till 7 March 2019BBB+21 January 2016A-12 October 2015
EUR 500 million till 7 March 2019BBB+21 January 2016A-20 June 2014
    

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.

Rating (Fitch) 
Alior Bank 
Long-term ratingBB 
Short-term ratingB
Viability Rating (VR)bb
Support Rating5
Outlookpositive

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.

Rating (Fitch)  
Pekao  
Long-term ratingA-
Short-term ratingF2
Viability Rating (VR)a- 
Support Rating5
Outlooknegative
    

Rating (S&P Global Ratings)  
Pekao  
Long-Term Foreign Currency RatingBBB+
Short-Term Foreign Currency RatingA-2
Long-Term Domestic Currency RatingBBB+ 
Short-Term Domestic Currency RatingA-2
Outlookstable
Standalone ratingbbb+
    

Rating (Moody's Investors Service Ltd.)  
Pekao
Long-term deposit ratingA2
Short-term deposit ratingPrime-1
Baseline Credit Assessmentbaa1 
Long-term Counterparty Credit Risk RatingA1(cr)
Short-term Counterparty Credit Risk RatingPrime-1(cr)
Outlookstable
 

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