Fitch lowers Oschadbank

Fitch Ratings said it downgraded JSC State Savings Bank of Ukraine's (Oschadbank) individual rating to E from D and affirmed the bank's long-term foreign-currency issuer default rating of B+ with a negative outlook.

The downgrade reflects the bank's increased dependence on government financial support, given the high loan exposure to state-owned Naftogaz (B/Watch negative) it took on at the end of 2008, according to the agency.

The downgrade also factors in risks stemming from recent rapid asset growth, deteriorating operating environment, negative asset quality trends and weak corporate governance, the agency said.

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