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Economy 2017-01-14T14:31:49+02:00
Ukrainian news
S&P Downgrades PrivatBank From 'R' To 'SD' On Loan Participation Notes Bail-In

S&P Downgrades PrivatBank From 'R' To 'SD' On Loan Participation Notes Bail-In

Standard & Poor's (S&P), an international ratings agency, revised its counterparty credit ratings on Ukraine-based PrivatBank to 'SD' (selective default) from 'R'.

Ukrainian News Agency learned this from an S&P press release.

An obligor rated 'R' is under regulatory supervision owing to its financial condition. During the pendency of the regulatory supervision the regulators may have the power to favor one class of obligations over others or pay some obligations and not others.

The rating action follows the Deposit Guarantee Fund's announcement that PrivatBank's three outstanding loan participation notes have been bailed in following the placing of the bank under temporary administration in late December 2016.

On December 26, 2016, the Fund announced that PrivatBank's three outstanding loan participation notes were bailed-in following the placement of the bank under the temporary administration.

The loan participation notes were issued by a special-purpose vehicle in the U.K., which had on-lent the proceeds to Privatbank. The bailed-in notes are as follows: USD 175 million 10.875% senior unsecured loan participation notes due February 2018; USD 200 million 10.25% senior unsecured loan participation notes due January 2018; and USD 220 million 11% subordinated loan participation notes due 2021.

"We regard the bail-in as a selective default under our criteria. This is based on our understanding that the noteholders will not be repaid as a result of the bail-in. We consider this as a selective default--as opposed to a general default--since no other debt obligations are currently in default. We do not rate any debt issued by PrivatBank. We expect to remove the ratings from 'SD' when we have enough information to assess the bank's creditworthiness following its recapitalization," S&P said.

As Ukrainian News Agency earlier reported, the State on December 21 acquired ownership of 100% of shares in PrivatBank.

Больше новостей о: ratings rating PrivatBank S&P Standard & Poor's


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