Fitch revises rating outlook for six Ukrainian banks to negative on sovereign change
Fitch Ratings has affirmed the Long-term foreign currency Issuer Default Ratings (IDRs) of Ukraine-based UkrSibbank, Ukrsotsbank (Ukrsots), VTB Bank (Ukraine) (VTBU), ProCredit Bank (Ukraine), Pravex-Bank (Pravex) and Credit Agricole Bank's (CAB) at 'B', and revised their Outlooks to Negative from Stable, the rating agency said in a press release on Monday.
"The rating actions follow the agency's revision of the Outlooks on Ukraine's Long-term foreign and local currency IDRs to Negative from Stable," it says.
"The revision of the Outlooks on the Long-term IDRs of UkrSibbank, Ukrsots, VTBU, ProCredit Bank (Ukraine), Pravex and CAB reflects the increased likelihood of a downgrade of Ukraine's Country Ceiling ('B') following the revision of the sovereign Outlook."
On June 28, Fitch affirmed Ukraine's Long-term foreign and local currency IDRs at 'B' and revised the Outlooks on the ratings to Negative from Stable. It affirmed the short-term IDR at 'B' and the Country Ceiling at 'B'.
"The revision of the Outlook to Negative from Stable reflects an increasingly fragile external financing position, the likelihood that international reserves will decline further as Ukraine faces a heavy external debt repayment schedule through 2014, and greater challenges in borrowing on international capital markets," Fitch said in the June 28 press release.
