... Issuer Default Rating (IDR) reflects Fitch Ratings' view that a default on the bank's senior FC obligations remains a real possibility due to the war between Ukraine and Russia. However, the bank has maintained generally adequate FC liquidity relative to its needs, helped by various regulatory capital and exchange controls that have been in place since the outbreak of the war to reduce the risks of deposit and capital outflows and maintain stability in the banking system. Ukrgasbank's Long-Term Local-Currency (LTLC) IDR is one notch above its LTFC IDR, reflecting limited regulatory restrictions on LC operations. The bank's Viability Rating (VR) reflects the high risks to its standalone profile caused by the war and that failure remains a real possibility. Challenging Operating Environment: Operating conditions for Ukrainian banks remain challenging, as reflected in our operating environment assessment of `ccc' due to the war. Continued...
