OREANDA-NEWS. On 02 March 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaBBB from uaA the long-term credit rating assigned to Kiev-based Ukrgasbank JSB OJSC (bank) and its bond issue (series A, B, D, E) for the amount of UAH350m. The ratings remain on Rating Watch List with negative outlook.

This rating action was prompted by banks deteriorated solvency under retaining low level of capitalization. The ratings are weighed down by decreased business activities in the majority of sectors of the national economy, declined population's incomes, which have negative impact on customers' solvency, people's confidence in the banking system and depreciating national currency under limited access to external funding. It should be noted that the liquidity of the bank is mainly supported by funds from the NBU.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

The Rating Watch List intends for informing the financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing negative trends, which may negatively affect creditworthiness of a ratings bearer.