Archive for December 11th, 2012

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Moody’s downgrades 11 Ukrainian banks

December 11, 2012

If anybody still pays attention to the credit assessments of agencies such as Moody’s, Fitch and S&P, and I have to be quite honest and say I don’t and never have, then yesterday those who still have faith in their accuracy and independence may have noted that Moody’s downgraded 11 Ukrainian banks.

Those downgraded were Privat Bank, OTP (Ukraine), Ukreximbank, Raiffeisen Bank Aval, Sberbank (Ukraine), First Ukrainian International Bank, Pivdenny, Oschadbank, Dnepr Bank, Prominvest Bank, Ukrin Bank and Aval.

I believe that VAB and Finance and Credit Bank were also downgraded but I am still checking that.

As that list includes almost every major domestic bank in Ukraine, I can only assume that it is not a reflection on the banks themselves but a readjustment after Moody’s downgraded the Ukrainian government from B2 to B3 last week –  and thus a trickle down of that risk assessment to the biggest national banks as a consequence.

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