04.07.2024
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Fitch upgrades the rating of Millennium Bank Hipoteczny's first covered bonds to the highest level AAA
Fitch upgraded the rating for Millennium Bank Hipoteczny's Series 1 covered bonds to AAA with a "Stable" outlook on 3 July 2024. The agency's decision follows the upgrade on 28 June 2024 of Bank Millennium S.A.'s Long-Term Issuer Default Rating, which is the benchmark for Millennium Bank Hipoteczny's Covered Bonds Rating, to BB+ with a “Positive” outlook.
We are pleased at the upgrade of the rating of Millennium Bank Hipoteczny's first covered bonds to AAA - the highest rating on the scale of rating agencies. It reflects the high quality of the mortgage debt portfolio that secures our covered bonds. We hope that this high rating from Fitch will contribute to the success of our subsequent issues of covered bonds and will contribute to building greater confidence in this type of debt securities among institutional and individual investors - said Artur Kulesza, Member of the Management Board of Millennium Bank Hipoteczny.
Fitch's rating applies to the first issue of 3-year mortgage covered bonds with a total nominal value of PLN 300 million, carried out in June this year. Total demand exceeded PLN 1.1 billion. The mortgage covered bonds were issued as part of the Millennium Bank Hipoteczny Mortgage Covered Bond Issue Programme on the basis of the Base Prospectus approved by the Polish Financial Supervision Authority on 15 April 2024. These instruments have also been admitted to trading on the parallel market of the Warsaw Stock Exchange.
The covered bonds issue date was 12 June 2024, and their maturity date is 11 June 2027. The instruments were valued in the bookbuilding process at 57 basis points above the WIBOR 3M rate and were offered to 50 investors.
The full text of Fitch's original rating announcement is available on Fitch's websitelink opens in a new window