Fitch Places PRAVEX-BANK PJSCCB on Rating Watch Negative

Tue Jan 28, 2014 9:53am EST

Related Topics

(The following statement was released by the rating agency) MOSCOW, January 28 (Fitch) Fitch Ratings has placed Ukraine's PRAVEX-BANK PJSCCB's (Pravex) ratings, including its 'B-' foreign currency Long-term Issuer Default Rating (IDR), on Rating Watch Negative (RWN). A full list of rating actions is provided at the end of this commentary. KEY RATING DRIVERS The rating action follows the recent announcement that Pravex's current 100% shareholder, Intesa Sanpaolo S.p.A. (Intesa) (BBB+/Negative), will sell its stake in the bank to CentraGas Holding, a company controlled by Ukrainian shareholders. The RWN reflects uncertainty over extraordinary support, if needed, from the new shareholder. Fitch has been informed that the sale is likely to be completed in the next three to six months subject to receiving necessary regulatory approvals. RATING SENSITIVITIES Fitch expects to resolve the RWN and downgrade Pravex's Long-term IDRs in the next three to six months, after the completion of the transaction. Fitch believes that Intesa will provide necessary support up until the completion of the bank's sale. However, if funding outflows accelerate in the near term and are not offset by liquidity support by either the new or the current shareholder, the ratings could come under downward pressure prior to the completion of the sale. The rating actions are as follows: Long-term foreign currency IDR: 'B-'; placed on Rating Watch Negative Long-term local currency IDR: 'B'; placed on Rating Watch Negative Short-term foreign currency IDR: 'B'; placed on Rating Watch Negative Support Rating: affirmed at ‘5’ Viability Rating: 'ccc' unaffected National Long-term Rating: 'AAA (ukr)'; placed on Rating Watch Negative Contact: Primary Analyst Anton Lopatin Associate Director +7 495 956 70 96 Fitch Ratings Moscow 26 Valovaya Street Moscow 115054 Secondary Analyst Anna Erachina Analyst +7 495 956 70 63 Committee Chairperson Alexander Danilov Senior Director +7 495 956 24 08 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available at www.fitchratings. com. Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 15 August 2012, 'Rating FI Subsidiaries and Holding companies' dated 10 August 2012, 'Rating Financial Institutions Above the Sovereign' dated 11 December 2012, 'Evaluating Corporate Governance', dated 12 December 2012, 'Recovery Ratings for Financial Institutions', dated 19 August 2013 and 'National Ratings Criteria', dated 19 January 2011 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here Rating Financial Institutions Above the Sovereign here Evaluating Corporate Governance here Recovery Ratings for Financial Institutions here National Scale Ratings Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

FILED UNDER: