Finance & Credit to transfer 50%+1 stake to government, investors

Finance & Credit Bank shareholders yesterday at their AGM decided to “transfer a 50%+1 stake in the bank to the government and investors.” The measure will be finalized after approval of the plan by Ukraine’s Cabinet of Ministers to take a share in the bank in return for capitalization support from the National Bank of Ukraine. In other news, yesterday Moody’s Investors Service said that it cut the bank’s credit ratings: long-term debt rating from ‘B1’ to ‘Caa2’, financial stability rating from ‘E+’ to ‘E’ and rating on the Ukrainian national scale from ‘Aa3.ua’ to ‘B3.ua’; the ratings were placed on review for possible change. Moody’s related the move to the bank’s failure to repay its USD 70 mln syndicated loan in full; the bank is currently in negotiations to restructure the loan. Finance & Credit Bank was Ukraine’s #14 largest lender by assets, according to National Bank of Ukraine statistics from Jan. 1, 2009.