Moody’s to downgrade Prominvestbank’s ratings

Moody’s Investors Service announced yesterday that it placed the Ba2 long-term local currency deposit rating of Prominvestbank on review for possible downgrade, noting the run on deposits currently being experienced by the bank, spurned by media reports of attempts at a hostile takeover of the bank. The deposit outflow is affected by the recent raider attack over the bank. At the same time, Moody’s has affirmed the B2 foreign currency bank deposit rating, which remains constrained by the country ceiling, the Aa1.ua National Scale Rating (NSR) and E+ Bank Financial Strength Rating (BFSR). The rating agency notes that Prominvestbank’s liquidity was recently supported by a UAH 1 billion (USD ~0.2 bln) refinancing facility from the National Bank of Ukraine, thus indicating a high degree of systemic support, the expectation of which was already incorporated into the bank’s ratings.