Moody's downgrades Privatbank securitization entities

Moodys’ Investors Service, said in a release on Friday, that it cut the ratings of Ukraine Mortgage Loan Finance No. 1 and Ukraine Auto Loan Finance No. 1, which were established by Privatbank, Ukraine’s largest bank, to respectively provide securitization of mortgage and auto loans. For Ukraine Mortgage Loan Finance No. 1, Moody’s downgraded its Class B USD 36.9 mln residential mortgage backed floating rate notes due in 2031 from ‘B1’ to ‘B3’. Moody’s also lowered its ratings on Ukraine Auto Loan Finance No. 1’s Class A USD 85.8 mln floating rate notes due in 2018 ‘ and Class B USD 18.7 mln floating rate notes due in 2018 from ‘Baa3’ to ‘B1.’ Moody’s said the action was the result of increased risk of redenomination in Ukraine due to the difficult economic conditions and risk of government intervention.