Moody’s downgrades 19 Ukrainian banks

Moody's Investors Service has downgraded the global foreign currency (GFC) deposit ratings of 19 Ukrainian banks to B3 from B2 and the foreign currency debt ratings of five Ukrainian banks to B1 from Ba3. It also downgraded the local currency debt ratings of two Ukrainian banks. The outlook is negative on the long-term GFC deposit ratings and the long-term foreign currency debt ratings affected by this rating action.
Moody's rating action was triggered by the downgrade of Ukraine's foreign currency bank deposit ceiling to B3 with negative outlook from B2, the downgrade of Ukraine's foreign currency bond ceiling to B1 with negative outlook from Ba3 and the downgrade of Ukraine's local currency bond ceiling to Ba1 from A3.
The decision reflects the rating agency's concerns about the deterioration of the macroeconomic environment and the banking system, persistent political uncertainty and tighter capital control regulations in Ukraine.
The long-term GFC deposit ratings of the following banks were downgraded to B3 (from B2) with a negative outlook:
– Calyon Bank Ukraine
– Dongorbank
– First Ukrainian International Bank
– Forum Bank
– ING Bank Ukraine
– Khreschatyk Bank
– OTP Bank Ukraine
– Pivdennyi Bank
– Pravex-Bank
– Privatbank Commercial Bank
– Raiffeisen Bank Aval
– Savings Bank of Ukraine
– Subsidiary Bank Sberbank of Russia
– Swedbank Invest
– Swedbank OJSC
– Ukreximbank
– Ukrsibbank
– Ukrsotsbank
– VAB Bank
The long-term foreign currency debt ratings of the following banks were downgraded to B1 (from Ba3) with a negative outlook:
– Forum Bank
– Privatbank Commercial Bank
– Ukreximbank
– Ukrsibbank
– Ukrsotsbank
At the same time, Raiffeisen Bank Aval's local currency debt rating was downgraded to Ba1 from Baa3, while its national scale rating was downgraded to Aa1.ua from Aaa.ua.
Ukrsotsbank's local currency debt rating was downgraded to Ba1 from Baa3.