Today Moody’s Investors Service upgraded JSC Ukreximbank’s ratings: Long-term Deposit in foreign currency to Саа1 from Саа2 and Long-term Deposit in local currency to B3 from Саа1 as well as Senior unsecured debt rating to B3 from Саа1 and changed outlooks to “Stable” from “Positive”. These changes reflect the rating agency’s view that the JSC Ukreximbank benefits from the enhanced creditworthiness of Ukrainian government given the bank’s systemic importance, its state ownership and significant role in the public policy.

The downgrade of the JSC Ukreximank’s Baseline Credit Assessment (BCA) to caa2 from caa1 reflects a deterioration in the bank’s capital position following losses in Q1 2020. As Moody’s noted in its press-release “BCA remains constrained by a high reliance on market funding and increased asset quality pressure due to the deteriorating economic and operating conditions in Ukraine.”  

Moody’s also considers that the government support of JSC Ukreximbank’s senior liabilities is very likely, and to a lesser extent for its subordinated debt, so FC Subordinated Debt rating was affirmed at the Саа2 level. At the same time rating agency affirmed Long-term and Short-term Counterparty Risk ratings and other short-term ratings and assessments of the bank.