Fitch revises rating outlook for Ukraine state banks to Positive

Fitch Ratings reported on Aug. 16 that it had revised
the rating outlooks on five rated Ukrainian banks to Positive from Stable,
keeping the ratings at B. The list covers four state-controlled banks,
including Oschadbank (OSCHAD) and Ukreximbank (EXIMUK) as well as private bank
ProCredit Bank (Ukraine). The move follows a similar improvement of the outlook for Ukraine’s sovereign rating
in early August. For the state banks, it “reflects Fitch’s expectation that the
Ukrainian authorities’ ability to provide support to the banks may improve”.
The bank ratings “are primarily sensitive to changes in the sovereign ratings,”
Fitch highlighted, explaining that further rating changes on the banks are
possible after Ukraine’s sovereign rating updates.

Alexander Paraschiy: The upgrade of the outlooks are fully expected, so they are unlikely to lead to any price moves
on OSCHAD and EXIMUK bonds.