Moody's changes outlook to negative from stable on 2 Ukrainian banks
Moody's Investors Service has today changed the outlook to negative from stable on the local-currency (LC) debt and deposit ratings of Subsidiary Bank Sberbank of Russia (Ba2) and First Ukrainian International Bank (B2). This aligns the banks' outlooks with the negative outlook on the Government of Ukraine's B2 rating and reflects the extent to which the banks' creditworthiness is correlated with that of the country's national government.
Moody's has also downgraded the National Scale Ratings (NSRs) of First Ukrainian International Bank to A3.ua from A2.ua, reflecting the bank's weakening position amongst Ukrainian peers in the context of the outlook change on the bank's Global Scale Ratings.
The actions on Subsidiary Bank Sberbank of Russia and First Ukrainian International Bank were primarily driven by a global reassessment of the linkages between the credit profiles of sovereigns and financial institutions domiciled within the country. For more information on Moody's view of this topic, please see the rating implementation guidance "How Sovereign Credit Quality May Affect Other Ratings", published on 13 February 2012, and further details in the special comment "Banks and Sovereigns: Risk Correlations Constrain Standalone Bank Credit Assessments", published on 30 April 2012.