Page 51 - UKRRptNov21

Positive outlook, the rating agency reported on Oct. 13. It also affirmed the rating of the banks’ senior Eurobonds at B with a Positive outlook, and upgraded the rating of Ukreximbank’s 2023 subordinated notes to CCC from CCC-. Fitch sees a high propensity of the government to provide support for the two banks if they need it, taking into account their 100% state ownership and their systemic importance. Fitch also upgraded the Viability Rating of Ukreximbank to b- (from ccc+) due to the recent improvement of its P&L, its lower “encumbrance of equity by net impaired loans” and reduction of “exposure to market risk.” The Viability Rating of Oschadbank was confirmed at b-. The rating agency is ready to further upgrade the banks’ ratings following a Ukraine sovereign rating upgrade. It can lower Ukreximbank's ratings if its amount of net impaired loans grows to 1.5x of Fitch Core Capital (from the end-June value of 0.9x). Oschadbank’s rating could be downgraded if its Fitch Core Capital ratio drops below 10% (from 14% as of end-June).
51 UKRAINE Country Report November 2021 www.intellinews.com