Fitch Ratings has affirmed Ukraine's PJSC CB PrivatBank's (PB) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B-'. The Outlooks are Stable.

According to a press release of Fitch, simultaneously, Fitch has affirmed the bank's 'b-' Viability Rating (VR) and upgraded the National Long-Term Rating to 'AA(ukr)' from 'AA-(ukr)'.

"PB's Long-Term IDRs are aligned with the bank's VR, which in turn reflects its significant direct exposure to Ukrainian sovereign risks, a large stock of distressed loans exposure (although almost fully provisioned), moderate loss absorption capacity and liquidity risks as well as potential litigation risk associated with a $0.4 billion lawsuit against the bank," Fitch said.

The upgrade of PB's National Long-Term Rating to 'AA(ukr)' from 'AA-(ukr)' reflects Fitch's reassessment of the bank's credit profile relative to its main peers, two Fitch-rated state-owned Ukrainian banks, Oschadbank and Ukreximbank, both rated 'B-'/Stable.

As reported, on December 18, 2016 the government at the suggestion of the National Bank of Ukraine (NBU) and the shareholders of PrivatBank, the largest of whom at the time were Ihor Kolomoisky and Hennadiy Boholiubov, decided to nationalize this largest financial institution in the Ukrainian market.

The bank ranked first among 83 operating banks as of July 1, 2018, in terms of total assets worth UAH 265.936 billion, according to the NBU.