Moody's says state capitalization has no immediate impact on ratings

Moody’s Investors Service released a statement yesterday in which it said the recapitalization plans announced by the Ukrainian government to funnel state funds into Finance & Credit Bank, Nadra Bank, Imexbank, Rodovid Bank, Ukrgazbank and Ukrprombank have no immediate implications for the banks’ respective credit ratings. Moody’s said any impact on the highest rated banks would depend on payment freezes on debt or deposit obligations, and that the government move could have a positive impact on the lowest rated banks. On April 17, the Cabinet of Ministers announced plans to direct USD 2.6 bln into the capital of seven banks; final approval is still pending from the National Bank of Ukraine and the Cabinet of Ministers.