Fitch Ratings has revised
A full list of rating actions is detailed below.
The rating action follows a similar Outlook revision of EFL's ultimate shareholder
Key Rating Drivers
The ratings of EFL are driven by an extremely high probability of support from its ultimate shareholder, CASA, the central body of
Fitch's support assessment considers CASA's full ownership of EFL, history of substantial funding and guarantee provision to the subsidiary, as well as the parent's ordinary capital support in the form of subscription to EFL's subordinated debt issuance and dividend waivers. Any extraordinary support required by EFL would be immaterial relative to CASA's ability to provide it, given the parent's solid credit profile and EFL's limited size relative to the parent's.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of EFL's IDR would require an upgrade of CASA's IDRs, although this is currently unlikely given the Stable Outlook on CASA's IDR
As the National Long-Term Rating is at the highest level on Fitch's National Ratings scale, it cannot be upgraded
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A weakening of CASA's propensity to support EFL as manifested, for example, in the form of significantly delayed or insufficient capital support, reduced strategic importance, reduced ownership stake and weakening commitment to the Polish market
A downgrade of CASA's ratings will result in a corresponding downgrade of EFL's ratings
Best/Worst Case Rating Scenario
International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
EFL's IDRs and Support Rating are linked to CASA's IDR.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
RATING ACTIONSENTITY/DEBT RATING PRIOR
Europejski Fundusz Leasingowy S.A. LT IDR A Affirmed A
ST IDR F1 Affirmed F1
Natl LTAAA (pol) AffirmedAAA (pol)
Natl ST F1+(pol) Affirmed F1+(pol)
Support 1 Affirmed 1
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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