International rating agency Fitch Ratings downgraded the long-term issuer default rating (RDE) Industrialbank (Zaporozhye) from the B- to CCC, reported on Wednesday.
According to a forecast by rating - a negative.
The report also indicates that while the Agency has confirmed the long-term RDE PrivatBank (Dnepropetrovsk) at the B, the Bank Khreschatyk (Kiev) and the Bank Pivdenny (Odessa) B-and a national long-term rating Diamantbank B (ukr) .
Outlook on the ratings - negative.
In reviewing the five private banks, with the Ukrainian owners, Fitch took into account the sharp deterioration in asset quality during the first half of 2009 due to devaluation of hryvnia in the fourth quarter of 2008 and a sharp economic downturn, but also takes into account the likely further increase in royalties for depreciation of credit - the report says.
According to Fitch, each of the five dealt with the banks reported a significant increase in problem loans (with a delay of more than 90 days) and /or prolongation and restructuring of loans in the first half of 2009.
Reportedly, these banks may need capital support.
The situation with liquidity remains complex, although the outflow of deposits weakened in the second quarter of 2009 as the sector as a whole and, in the banks (except Industrialbank) after a significant loss in the fourth quarter of 2008 - the first quarter of 2009, - notes the report.
relatively Industrialbank message indicates that the reduction rate associated with a sharp deterioration in the quality of assets in the bank, combined with a high risk of related parties: the level of problem loans finuchrezhdeniya increased from 2.5% of the loan portfolio at the end of 2008 to 7.2% by the end of June 2009, while loans to delay by one day has increased almost twice - up to 21.1%.
At the same time 51% of the loan portfolio accounted for Restructured loans and prolonged.
According to Fitch, the reserves and the capitalization of the bank provide a substantial capacity to absorb losses, but it is still regarded as a moderate, taking into account the degree of impairment of assets. The Agency also notes that the 20 largest contributors to the outcome of June accounted for 42% of all bank liabilities.
The report also notes that confirmation RDE PrivatBank represents a manageable level depreciation credit, risk management, which has a quality above the average for the Ukrainian market, a greater ability to absorb losses on loans (the majority of comparable Ukrainian banks) and limited risks of refinancing.
Ratings also maintained its extensive client base of the bank in the country, significant shares of the market and the potential for future support of liquidity from the controller if necessary. According to the agency, may also support capital from shareholders, but it can not be left in the light of the lack of transparency of the financial situation of the owners.
At the same time, the ratings reflect PrivatBank increasing problem loans reported (8.8% of loans to unconsolidated basis by the end of May, 2009) and prolonged /rescheduled loans (8.5%) and significant concentrations of credit.
The deteriorating quality of assets and a substantial likelihood that require further contributions to the capital, led to a decrease in an individual bank's rating to level D and D /E, - the report says.
At the same time, said agency, by July, 11% of liabilities PrivatBank was formed borrowing from the NBU. Short-term payments on foreign borrowing (mainly trade financing and amortization of securitization transactions) are moderate, and redemption of Eurobonds PrivatBank of $ 500 million is not earlier than 2012 - the report says.
Agency also notes that the problem loans from the bank Pivdenny at the end of the first half of 2009 were still at a low level of 2.5% of the loan portfolio, but this figure reflects a policy of delay finuchrezhdeniya Management: prolonged and Restructured Loans rose to a high level - 33% of the portfolio. Click to continue »