Moody's lowers Alfa Bank Ukraine's ratings to 'B3'

Moody’s Investors Service said in a press release yesterday that it downgraded Alfa Bank Ukraine’s local and foreign currency deposit rating to ‘B3’, from ‘Ba3’ and ‘B2,’ respectively; the bank’s local and foreign currency senior unsecured debt rating was also cut to ‘B3’ from ‘Ba3’ and national scale rating to ‘Baa3.ua’ from ‘Aa1.ua.’ Alfa Bank’s financial strength rating remained unchanged at E+. The bank’s long-term ratings remain on review for possible further downgrade. The move came in response to the bank’s recognition of a technical default on its USD 100 mln Eurobonds due on May 4 (see our flash note of May 5).