Moody's may cut PrivatBank

Moody's Investors Service said it placed on review for possible downgrade the B2 long-term local- and foreign-currency deposit ratings and the standalone E+ bank financial strength rating of PrivatBank AS.

Moody's affirmed the bank's Not Prime short-term rating.

The review for possible downgrade of PrivatBank's ratings primarily reflects Moody's concerns that PrivatBank's banking license may be revoked by Latvia's Financial and Capital Market Commission, the agency said.

The potential revoking of the license is connected with the suspension of Unimain Holdings' voting rights, one of the bank's two shareholders, the agency added. The commission has given PrivatBank six months to resolve the issue, starting on Jan. 21.

The bank's B2 long-term deposit rating continues to reflect Moody's assessment that there is a moderate probability of parental support from Privatbank (Ukraine), Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.