Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2 - Moody's Global Credit Research

Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2

Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2 - Moody's Global Credit Research
Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2
Published Oct 12, 2020
6 pages (2656 words) — Published Oct 12, 2020
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Ukreximbank
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Ukreximbank: Update following BCA upgrade, deposit ratings affirmation - Credit Opinion – 2021/12/21 – US$ 250.00 – ...On 16 December 2021, we upgraded Ukreximbank's Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from caa1, its Counterparty Risk (CR) Assessment to B2(cr) from B3(cr) and its Counterparty Risk Ratings (CRRs) to B2 from B3. The upgrade was driven by the improvement in the Ukrainian banking system's Macro Profile, combined with the recent improvements in the bank's asset quality and profitability, and strengthening of its capital buffer and funding mix. At the same time, Ukreximbank's BCA remains constrained by the large amount of problem loans relative to the bank's combined capital and reserve buffer and the volatility of its earnings. Our assessment of a very high probability of government support for the bank's deposits does not result in any rating uplift because Ukreximbank's BCA of b3 is at the same level as the Government of Ukraine's (B3 stable) debt rating....

Ukreximbank: Key Facts and Statistics - H1 2021 - Issuer Profile – 2021/10/20 – US$ 200.00 – ...Note: Currency converted using exchange rate of UAH¡$0.03680, as of 30 June 2021 Sources: Company reports (consolidated financial statements June 2021 and presentation July 2021), company data, National Bank of Ukraine, Moody's Investors service...

Ukreximbank: Update to credit analysis - Credit Opinion – 2021/06/25 – US$ 250.00 – ...We assign local- and foreign-currency long-term deposit ratings of B3 to Ukreximbank. The ratings are based on the bank's Baseline Credit Assessment (BCA) of caa1 and incorporate a one-notch uplift based on a very high probability of government support from the Government of Ukraine (B3 stable). Ukreximbank's BCA reflects the high interlinks between the bank's standalone asset quality and the sovereign's creditworthiness, given the bank's high direct exposure to sovereign debt, its weak profitability and high reliance on market funding offset by ample liquidity....

Ukreximbank: Update following upgrade of foreign-currency deposit rating to B3, outlook remains stable - Credit Opinion – 2020/12/17 – US$ 250.00 – ...On 10 December 2020, we upgraded the long-term foreign-currency (FC) deposit rating of Ukreximbank to B3 from Caa1. The upgrade was driven by the change in the FC deposit ceiling of Ukraine (B3 stable) following the publication of our updated Country Ceilings Methodology. Ukreximbank's long-term deposit ratings incorporate a one-notch uplift based on the bank's Baseline Credit Assessment (BCA) of caa1, which reflects a very high probability of government support. The bank's FC subordinated debt rating remains at the Caa1 level, because it does not benefit from government support and is in line with the bank's BCA. Ukreximbank's BCA reflects the high interlinks between the bank's standalone asset quality and the sovereign's creditworthiness, given the bank's high direct exposure to sovereign debt, weak profitability, ample liquidity and high reliance on market funding....

Ukreximbank: Update following ratings affirmation and upgrade of BCA - Credit Opinion – 2020/10/23 – US$ 250.00 – ...On 12 October 2020, we upgraded Ukreximbank's Baseline Credit Assessment (BCA) to caa1 from caa2. The upgrade reflects our expectation that Ukreximbank's loss-absorption capacity will materially improve as a result of capital injections recently announced by the Ukrainian government. Concurrently, we upgraded its foreign-currency subordinate debt rating to Caa1 from Caa2. Ukreximbank's long-term local-currency deposit rating was affirmed at the B3 level, incorporating a one-notch uplift from the bank's BCA of caa1, which reflects a very high probability of support from the government. Ukreximbank's BCA also reflects the high interlinks between the bank's standalone asset quality and the sovereign's creditworthiness, given the bank's high direct exposure to sovereign debt, its weak profitability, ample liquidity and high reliance on market funding....

Ukreximbank: Update following rating action, outlook changed to stable from positive - Credit Opinion – 2020/06/19 – US$ 250.00 – ...On 16 June 2020, we upgraded Ukreximbank's local-currency deposit rating to B3 from Caa1 and changed the outlook on its deposit ratings to stable from positive, following the upgrade of the Government of Ukraine's rating (B3 stable). Concurrently, we downgraded the bank's Baseline Credit Assessment (BCA) to caa2 from caa1 to reflect a significant deterioration in its capital position following large losses reported in the first quarter of 2020. Ukreximbank's B3 long-term local-currency deposit rating incorporates a two-notch uplift from the bank's BCA of caa2, given a very high probability of support from the government. Ukreximbank's BCA also reflects the high interlinks between the bank's standalone asset quality and the sovereign's creditworthiness, given the bank's high direct exposure to sovereign debt and bonds guaranteed by the state (47% of the bank's assets or 7x-8x of the bank's equity); its weak profitability and capitalisation; high level of liquid assets (over 50% of total...

Ukreximbank: Update following rating action - Credit Opinion – 2019/12/17 – US$ 250.00 – ...On 27 November 2019, we affirmed all the ratings of Ukreximbank and changed the outlook on its deposit ratings to positive from stable, following the rating action on the Government of Ukraine ( Caa1 positive) and the improvement in the Ukrainian banking system's Macro Profile to Very Weak+ from Very Weak. The positive outlook is aligned with that on the sovereign rating, which reflects our assessment of a very high probability of government support for the bank's deposits. The affirmation of the bank's Baseline Credit Assessment (BCA) reflects (1) the high interlinks between the bank's standalone credit fundamentals and the sovereign's creditworthiness, given the bank's high direct exposure to sovereign debt and bonds guaranteed by the state (over 50% of the bank's assets or 9x-10x of the bank's equity as of the first half of 2019); (2) its strengthened recurring profitability in 2019; and (3) its high level of liquid assets (over 50% of total assets as of H1 2019)....

Ukreximbank: Update to credit analysis - Credit Opinion – 2019/08/09 – US$ 250.00 – ...The Caa1 global local-currency deposit rating assigned to Ukreximbank is based on its caa1 Baseline Credit Assessment (BCA) and our assessment of a very high probability of the bank receiving government support in times of need. However, this support does not provide any rating uplift to Ukreximbank's local currency deposit rating as the Government of Ukraine's Caa1 rating is not higher than the bank's BCA. The bank's foreign-currency deposit rating of Caa2 is capped by a foreign-currency deposit ceiling....

Ukreximbank: Key Facts and Statistics - 9M September 2018 - Issuer Profile – 2019/02/22 – US$ 200.00 – ...As of 1 January 2019, Ukreximbank (Ukrexim) was the largest Ukrainian bank in terms of net loans and third-largest bank in terms of total assets, with a market share of around 12.0%. Ukrexim acts as a financial agent on behalf of the Ukrainian government for loans (from foreign financial institutions) originated, borrowed or guaranteed by the State of Ukraine. The bank also provides various financial services, including structured financing, lending for energy efficiency projects, trade financing, deposit-taking facilities, transfer services, currency exchange and other banking services, to both individuals, and industrial and state- owned enterprises. As of 30 September 2018, the bank reported a consolidated asset base of UAH164.0 billion ($5.8 billion). As of 1 January 2019, Ukrexim operated through a head office, 22 branches and 39 sub- branches in Ukraine. Ukrexim was established in 1992 to support the government's international financial activities, including export-import transactions....

Ukreximbank: Update Following Rating Action - Credit Opinion – 2019/02/12 – US$ 250.00 – ...On 27 December 2018, Moody's upgraded state-owned Ukreximbank's long-term LC deposit and FC senior unsecured debt ratings to Caa1 with a stable outlook from Caa2 (positive outlook), the bank's FC deposit rating to Caa2 with a stable outlook from Caa3 (positive outlook), FC subordinated debt rating to Caa2 from Caa3 and the bank's BCA to caa1 from caa2. The upgrade was driven by the upgrade of Ukraine's sovereign bond rating to Caa1 from Caa2 and reflects: (1) the high inter-linkage between the bank's standalone credit fundamentals and sovereign creditworthiness, given the bank's high direct exposure to sovereign debt and state owned companies; (2) improved coverage of problem loans, (3) strengthened recurring profitability in 2018; and (4) high level of liquid assets. The Caa1 global local currency deposit rating assigned to Ukreximbank is based on its caa1 baseline credit assessment (BCA), and our assessment of a very high probability of government support in the event of need. However,...

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MLA:
Moody's Global Credit Research. "Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2" Oct 12, 2020. Alacra Store. Jan 28, 2022. <http://www.alacrastore.com/moodys-credit-research/Moody-s-affirms-Ukreximbank-s-long-term-deposit-ratings-upgrades-BCA-to-caa1-from-caa2-PR_434233>
  
APA:
Moody's Global Credit Research. (). Moody's affirms Ukreximbank's long term deposit ratings, upgrades BCA to caa1 from caa2 Oct 12, 2020. New York, NY: Alacra Store. Retrieved Jan 28, 2022 from <http://www.alacrastore.com/moodys-credit-research/Moody-s-affirms-Ukreximbank-s-long-term-deposit-ratings-upgrades-BCA-to-caa1-from-caa2-PR_434233>
  
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