Fitch slashes Ukrainian banks

Fitch Ratings said it downgraded seven Ukrainian banks, including Biz Finance plc, SSB No.1 plc, State Export-Import Bank of Ukraine (Ukreximbank) and JSC State Savings Bank of Ukraine (Oschadbank). The other three do not have rated debt, or rated debt valued at less than $15 million.

The agency lowered their long-term foreign-currency issuer default ratings to CCC- from B. The local-currency IDRs was downgraded to CCC in line with the sovereign local-currency rating.

“The rating actions follow the downgrade of Ukraine's sovereign ratings to CCC from B, reflecting the military invasion by Russia, which has resulted in heightened risks to Ukraine's external and public finances, macro-financial and political stability,” Fitch said in a press release.

The ratings of the senior unsecured debt of Oschadbank and Ukreximbank, issued by SSB No.1 and BIZ Finance, respectively, have been lowered to CCC- from B. “They are aligned with the banks' long-term foreign-currency IDRs,” Fitch said.

Ukreximbank's subordinated debt, issued by Biz Finance, has been cut to CC from CCC. “This is one notch below the bank's CCC- IDR, reflecting likely below-average recoveries in case of default,” the agency said.

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