Moody's assigns State Savings Ukraine notes B2

Moody's Investors Service said it assigned B2 long-term foreign-currency senior debt ratings to the proposed senior loan participation notes of State Savings Bank of Ukraine.

The size of the issue is expected to be about $500 million and the notes are expected to be issued for a five-year period.

The notes will be issued on a limited-recourse basis by SSB No.1 plc, a U.K.-based special purpose vehicle for the sole purpose of funding a loan to the bank, the agency said.

The outlook is stable.

The bank's baseline credit assessment of B2 is constrained by corporate governance issues stemming from the bank's ownership by the government, high, albeit gradually reducing, single-party loan concentrations and weak economic capitalization, as reflected in the high level of related-party lending, Moody's said.

The ratings also incorporate the risks associated with the operating environment in Ukraine, the agency said.

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