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Fitch: Oschadbank notes B
Fitch Ratings said it assigned an expected long-term rating of B and a recovery rating of RR4 to SSB No.1 plc's upcoming issue of fixed-rate limited recourse notes. The issue's total amount and final maturity are yet to be determined.
The notes are to be used solely for a dollar-denominated loan to JSC State Savings Bank of Ukraine (Oschadbank).
SSB No.1 will only pay noteholders amounts received from Oschadbank under the loan agreement, Fitch said.
The claims under the loan agreement will rank at least equally with the claims of other senior unsecured and unsubordinated creditors of Oschadbank, save those preferred by relevant Ukrainian legislation, the agency said.
Oschadbank is the only bank in Ukraine, where retail deposits are fully covered by state guarantee regardless of the amount, Fitch said.
The issue's long-term rating corresponds to Oschadbank's long-term foreign-currency issuer default rating of B. The issue's recovery rating of RR4 reflects average recovery prospects for bondholders in a default.
The bank also has a senior unsecured debt rating of B, senior unsecured debt in local-currency of AA-(ukr), short-term foreign-currency issuer default rating of B, viability rating of B- and national long-term rating of AA-(ukr).
The ratings are driven by potential support from the Ukrainian authorities, in case of need, based on the bank's 100% state ownership, its policy role, high systemic importance and the track record of capital support for the bank under different governments, the agency said.
The ratings also consider the ability of the Ukrainian authorities to provide such support, which remains limited, as indicated by the sovereign's B long-term issuer default rating, Fitch said.
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