Moody’s cuts two Ukraine banks

Moody’s Investors Service said it downgraded by one notch the long-term ratings Ukrainian banks, following the downgrade of Ukraine's sovereign rating to Caa3 from Caa2.

The agency lowered the senior unsecured ratings of Savings Bank of Ukraine and Ukreximbank to Caa3 from Caa2. Moody’s also cut Ukreximbank’s subordinate rating to Ca from Caa3.

“Today's rating action was prompted by the increased risks to the Ukraine's government debt sustainability from a more protracted military conflict than Moody's initially expected, which will have a severe impact on Ukraine's economic conditions and banks' operating environment. Against this backdrop, Moody's has lowered the macro profile for Ukraine to very weak-,” the agency said in a press release.

The outlook for the banks is negative reflecting the outlook on Ukraine.

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