Fitch rates ProCredit Ukraine bond AAA(ukr)

Fitch Ratings said it assigned ProCredit Bank Ukraine a national long-term AAA(ukr) rating with a stable outlook.

ProCredit Ukraine's other ratings are affirmed including the BB- long-term and B short-term foreign-currency issuer default ratings, BB long-term and B short-term local-currency issuer default ratings, D individual rating and 3 support rating.

The outlooks on the issuer default ratings are stable.

At the same time, Fitch assigned ProCredit Ukraine's upcoming four-year UAH175 million bond issue, with a two-year put option, an expected national long-term AAA(ukr) rating. The final rating is contingent upon receipt of final documentation conforming materially to information already received.

ProCredit Ukraine's ratings reflect the potential support available from its shareholders, if needed. Fitch's view of the strong propensity of the bank's 60% owner, Frankfurt-based ProCredit Holding AG, to provide support considers the centralization of the bank's control functions and risk-management policies and procedures with the parent and the bank's high degree of integration with the ProCredit group. However, the country ceiling BB- of Ukraine limits the extent to which support can be factored into the foreign-currency issuer default ratings and country risks also affect the local-currency issuer default ratings. The individual rating reflects the bank's small size and credit and operational risks associated with its expansion.

However, Fitch said capitalization is currently acceptable, asset quality has been good to date, liquidity is satisfactory and profitability is improving.

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