Fitch upgrades Ukrsotsbank

Fitch Ratings said it upgraded Ukrsotsbank's long-term foreign-currency issuer default rating to BB- from B and support rating to 3 from 5. The ratings are removed from Rating Watch positive. A long-term local-currency issuer default rating of BB has been assigned. Its short-term issuer default rating and individual rating are affirmed at B and D, respectively.

The bank's two eurobond issues - $100 million due June 6, 2008 and $400 million due Feb. 22, 2010 - have been upgraded to BB- from B and the recovery ratings of RR4 on these have been withdrawn. Fitch also has withdrawn the bank's sovereign-derived support rating floor of B-.

The outlook is positive.

These actions follow the recent completion of the acquisition of a 94.2% stake in the bank by UniCredit (rated A+ with positive outlook) through its Vienna subsidiary, Bank Austria Creditanstalt AG.

The upgrade reflects Fitch's view of UniCredit's greater ability compared with that of the bank's previous majority owners, to provide the bank with support in case of need.

The ratings are constrained by Ukraine's BB- country ceiling and take into account the country's risks.

© 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.