S&P May Downgrade Ratings of Ukrainian Banks
OREANDA-NEWS On 20 October was announced, that Standard & Poor's, an international rating agency, placed the long- and short-term credit ratings of Alfa-Bank, Kredobank (PFTS: ZUKB) and Ukrsotsbank (PFTS: USCB), being at the В+/В level, to the CreditWatch list for revision with negative outlook. The ratings under the national scale of Alfa-Bank and Kredobank, being at the uaA- level, are also under revision with negative outlook. This agency move followed the placement of Ukraine’s sovereign credit ratings into the CreditWatch list with negative outlook.
According to the credit analyst of the agency – Annette Ess, the sovereign ratings of Ukraine will be taken out from the CreditWatch list this month, after which the ratings of the said three banks will be withdrawn from it as well. Should the level of the sovereign rating to-be-withdrawn from the CreditWatch list be downgraded, its will accordingly influence the ratings of the financial institutions.
We would like to remind the reader that Fitch international rating agency changed its outlook for the long-term IDR of Ukrsotsbank from stable to negative late September. In August, Standard & Poor's enhanced the long-term credit rating of Kredobank from В to В+, and in parallel enhanced the bank rating under the national scale due to increased support from its parent group.