Moody's takes rating actions on six Ukrainian banks
Moody's Investors Service, on June 16 upgraded the ratings and assessments of six Ukrainian banks (as applicable: PrivatBank, Oschadbank, Ukreximbank, Raiffeisen Bank Aval, Pivdenny Bank, JSCB, Sberbank PJSC). Moody's also revised the outlooks for the ratings of these six banks to stable from positive. The rating action follows Moody's upgrade of Ukraine's sovereign debt rating to B3 stable from Caa1 positive on June 12, 2020. Concurrently, Moody's downgraded the Baseline Credit Assessment (BCA) and adjusted BCA of one bank (Ukreximbank).
"Following the upgrade of Ukraine's sovereign rating to B3, Moody's upgraded the ratings of six banks. Given most Ukrainian banks have substantial holdings of domestic government bonds, their BCAs are constrained by the country's sovereign rating, and this constraint is now lessened thanks to the improved creditworthiness of the government," Moody's said.