Moody`s Investors Service has today downgraded the long-term foreign-currency senior unsecured debt rating of PrivatBank to C from Ca, according to a posting on the agency`s website.
The bank`s baseline credit assessment (”BCA”), adjusted BCA, long and short-term local and foreign currency deposit ratings, and its long and short-term Counterparty Risk Assessments were unaffected by today`s rating action, Moody`s said in a new global credit research.
The downgrade of PrivatBank`s senior unsecured debt rating to C from Ca primarily reflects Moody`s expectation that senior debt holders will sustain material losses as a result of bail-in and conversion into equity.
The C senior unsecured debt rating does not carry outlooks. Moody`s will then withdraw the C foreign currency senior unsecured debt rating of PrivatBank.
As UNIAN reported, the Cabinet of Ministers at its extraordinary meeting on Sunday, December 18, decided to transfer PrivatBank to 100% state ownership. The decision was made based on the results of the meeting of the National Security and Defense Council.
Later, PrivatBank replaced bonded obligations for $595 million to the SPV (UK) for loan participation notes.