Moody's cuts five Ukrainian banks

Moody's Investors Service said it has taken rating actions on five Ukrainian banks, as follows: the bank financial strength ratings of OTP Bank Ukraine, Raiffeisenbank Aval, UkrSibbank and Ukrsotsbank were downgraded by one notch with a negative outlook, while debt, deposit and national-scale ratings of these banks were affirmed.

The bank strength rating of VAB Bank was downgraded by one notch with a stable outlook, while its local currency deposit and foreign currency debt ratings have been downgraded by two notches and foreign currency deposit rating was downgraded by one notch with a negative outlook, the agency added.

According to Moody's, the following ratings have been downgraded:

• OTP Bank Ukraine: BFSR to D- from D;

• Raiffeisen Bank Aval: BFSR to D- from D;

• UkrSibbank: BFSR to D- from D;

• Ukrsotsbank: BFSR to D- from D; and

• VAB Bank: BFSR to E from E+, local currency deposit rating to Caa1 from B2, senior unsecured debt rating to Caa1 from B2 and national-scale rating to Ba2.ua from A3.ua.

The agency added that the rating actions do not affect the following ratings of the aforementioned issuers:

• UkrSibbank: long-term local currency deposit rating of Ba1, foreign currency deposit rating of B3, foreign currency debt rating of B1, short-term Not Prime deposit and debt ratings and NSR of Aa1.ua;

• Ukrsotsbank: long-term local currency deposit rating of Ba1, foreign currency deposit rating of B3, local currency debt rating of Ba1, foreign currency debt rating of B1, short-term Not Prime deposit and debt ratings and NSR of Aa1.ua; and

• VAB Bank: short-term Not Prime deposit rating.

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