Moody's Downgrades 11 Ukrainian Banks, Raiffeisen Leasing Aval
Moody's Investors Service, an international ratings agency, has today lowered the standalone credit assessments, and downgraded the debt and deposits ratings, as well as National Scale Ratings (NSRs) of 11 banks and one leasing company, Raiffeisen Leasing Aval in Ukraine, the agency has announced in a press release.
Negative outlooks have been maintained on all affected banks' ratings.
All the rating actions were prompted by Moody's downgrade on 5 December 2012 of the Ukrainian government rating to B3 from B2 and the related adjustments to the country's ceilings, mainly, foreign-currency bank deposit ceiling to Caa1 from B3; local-currency bank deposit and bond ceiling to B2 from Ba1; and foreign-currency bond ceiling to B3 from B1.
These ceilings cap the maximum ratings that can be assigned to banks and other issuers domiciled in the country.
The negative outlook on the sovereign ratings was maintained.
The following rating actions were taken on: PrivatBank, OTP Bank (Ukraine), Ukreximbank, Raiffeisen Bank Aval, Subsidiary Bank Sberbank of Russia, First Ukrainian International Bank, Pivdennyi Bank, Savings Bank of Ukraine, Credit Dnepr Bank, Prominvestbank, Ukrinbank and Bank Finance and Credit.
According to Moody's rating definitions, obligations and issuers rated B are considered speculative and are subject to high credit risk.
As Ukrainian News earlier reported, Moody's on December 6 downgraded Ukraine's government bond rating from B2 to B3, outlook Negative.