Fitch cuts 11 Ukrainian banks to negative view

Fitch Ratings said it changed to negative from stable the outlooks for 11 Ukrainian banks: Privatbank, First Ukrainian International Bank, Bank Credit Dnepr, Industrialbank, Bank Khreschatyk, Kreditprombank, Pivdennyi Bank, Ukrgasbank, Vseukrainsky Aksionerny Bank, Nadra Bank and Bank Diamant.

The change in outlook reflects an increased concern about the credit profiles of Ukrainian banks in light of the renewed sharp depreciation of the national currency, the hryvnia, Fitch said.

The depreciation heightens risks for Ukrainian banks in three main areas, the agency said. Firstly, there is an increased risk of renewed deposit withdrawals as confidence in the banking system ebbs and customers seek to convert hryvnia into dollars, which could put additional pressure on liquidity. Secondly, asset quality is likely to deteriorate more rapidly, Fitch said. And lastly, capital ratios are likely to fall significantly, the agency said.

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