Fitch downgrades Ukrainian banks

Fitch Ratings said it downgraded by one notch the long-term issuer default ratings of nine Ukrainian banks following the downgrade of Ukraine's long-term foreign- and local-currency issuer default ratings to B from B+.

The outlooks for the banks remain negative.

The agency lowered the foreign-currency issuer default ratings of OJSC Swedbank (Swedbank Ukraine), Bank Forum, ProCredit Bank (Ukraine), JSC VTB Bank (Ukraine), JSCIB UkrSibbank, Ukrsotsbank and Pravex Bank to B from B+ and their local-currency issuer default ratings to B+ from BB-.

The senior unsecured debt ratings of Bank Forum, UkrSibbank and Ukrsotsbank were lowered to B/RR4 from B+.

The foreign- and local-currency issuer default ratings of JSC State Savings Bank of Ukraine (Oschadbank) and JSC State Export-Import Bank of Ukraine (Ukreximbank) were downgraded to B from B+. Ukreximbank's senior unsecured debt rating was lowered to B/RR4 from B+, and its subordinated debt rating was lowered to CCC/RR6 from B-.

The downgrade of Oschadbank and Ukreximbank reflects the reduced ability of the government to provide support in case of need, Fitch said, and the downgrade of the remaining banks reflects the downgrade of Ukraine's country ceiling to B from B+.

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