Moody's ups UkrSibbank notes

Moody's Investors Service said it upgraded to Ba3 from B1 the long-term debt rating of the $100 million 10.5% loan participation notes issued in 2004 by Dresdner Bank AG on a limited-recourse basis for the sole purpose of funding a loan to UkrSibbank.

At the same time, the agency assigned a Ba3 long-term foreign currency debt rating to the loan participation notes to be issued by Bayerische Hypo- und Vereinsbank AG on a limited-recourse basis for the sole purpose of funding a loan to UkrSibbank.

The outlook is positive for both.

Moody's said the bank's B2 long-term foreign currency deposit rating and its E+ financial strength rating are unaffected by this rating action.

The upgrade, the agency said, is based on the fundamental credit quality of UkrSibbank and its support from the National Bank of Ukraine.

Moody's said the Ba3 rating indicates joint possibilities of default that are contained in the foreign currency ceiling and the standalone rating of the security.

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