Moody's may cut UkrSibbank

Moody's Investors Service said it placed on review for downgrade UkrSibbank's Ba2 long-term local deposit rating and its Aa1.ua national scale rating.

The bank's B2 long-term scale rating, B3 foreign-currency deposit rating and B1 foreign-currency senior unsecured debt rating are unaffected.

The outlook is stable.

The review follows the recent downgrade of UkrSibbank's parent, BNP Paribas, to C/Aa3 from B-/Aa2, Moody's said.

The primary driver for the review is BNP Paribas' diminished flexibility to support its foreign subsidiaries, the agency said.

The operating environment for euro zone banking groups, driven by the sovereign debt crisis and restricted access to unsecured wholesale funding, has deteriorated significantly in recent months, Moody's said.

Against this backdrop, many Western European banks will face difficult choices in how to deploy scarce capital and funding resources, the agency added.

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