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RA Fitch Affirms UkrSibbank at 'CCC'; Withdraws Ratings

June 02, 2015 | Cbonds

Fitch Ratings has affirmed Public Joint Stock Company UkrSibbank's (UkrSib) Long-term foreign currency Issuer Default Rating (IDR) at 'CCC'.
Simultaneously, Fitch has withdrawn UkrSib's ratings as the bank has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for UkrSib.

KEY RATING DRIVERS

UkrSib's IDRs, National Long-Term Rating and Support Rating factor in the likelihood of support the bank may receive from its majority shareholder, BNP Paribas (A+/Stable). The bank's foreign currency Long-term IDR of 'CCC' is constrained by Ukraine's Country Ceiling (CCC), which limits the extent to which support from the bank's foreign shareholder can be factored into the ratings. Ukraine's Country Ceiling reflects the high risk of capital and/or exchange controls being tightened, to the extent that these would materially constrain or impede the private sector's ability to repay foreign-currency obligations.

The 'B-' local currency Long-term IDR with Negative Outlooks takes into account country risks, and in particular the risk, in extreme scenarios, of restrictions being placed on the bank's ability to service its local currency obligations.

The bank's Viability Rating reflects its weak capital position (Fitch Core Capital was only marginally positive at end-2014 and regulatory capital adequacy ratio of 9.2% was below the required minimum of 10% at end-1Q15), high levels of loan impairment (loans overdue by more than 90 days accounted for 23% of end-2014 loans) and weak financial performance driven by high credit losses (the banks was loss-making in 2014-1 Q15, local GAAP).

RATING SENSITIVITIES
Not applicable
The following ratings have been affirmed and withdrawn:
Long-term foreign currency IDR: 'CCC'
Long-term local currency IDR: 'B-', Outlook Negative
Short-term foreign currency IDR: 'C'
Support Rating: '5'
Viability Rating: 'cc'
National Long-Term rating: 'AAA(ukr)', Outlook Stable

Company: UkrSibbank

Full company namePJSC "UkrSibbank"
Country of riskUkraine
Country of registrationUkraine
IndustryBanks

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