Moody’s rates Savings Bank of Ukraine notes Ca

Moody's Investors Service said it assigned a Ca long-term foreign currency debt rating to the senior unsecured notes of Savings Bank of Ukraine, which mature in 2023 and 2025 and are issued in exchange for similar notes with initial repayment dates in 2016 and 2018.

Concurrently, the agency withdrew the Ca long-term foreign-currency senior unsecured debt ratings assigned to the latter notes.

The outlook on the senior unsecured debt ratings remains negative.

The action follows Savings Bank of Ukraine 's announcement of the results of its September debt exchange, which are as follows:

• Maturity of $700 million senior unsecured notes extended by seven years to March 2023 from March 2016 with: (a) 60% of the principal amount to be redeemed on March 10, 2019; and (b) the remaining principal amount to be redeemed in eight equal semi-annual installments starting on Sept. 10, 2019, with the final repayment being due on March 10, 2023. The coupon rate increased to 9 3/8% from 8¼%; and

• Maturity of $500 million senior unsecured notes extended by seven years to March 2025 from March 2018 with: (a) 50% of the principal amount to be redeemed on March 20, 2020; and (b) the remaining principal amount to be redeemed in 10 equal semi-annual installments starting on Sept. 20, 2020, with the final repayment being due on March 20, 2025. The coupon rate increased to 9 5/8% from 8 7/8%.

The Ca foreign-currency senior unsecured rating assigned to the new senior notes is based on, and at the same level as, Savings Bank of Ukraine's baseline credit assessment of ca. Moody’s said this placement reflects the fact that these instruments are direct, unconditional, unsecured and unsubordinated obligations of the bank and will rank pari passu with all its other direct, unconditional, unsecured and unsubordinated future obligations.

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