Ratings Agencies Consider Upgrading Bank Forum

Ratings agencies put Bank Forum (FORM: BUY) under review yesterday, following news that Commerzbank agreed to purchase a 60%+1 stake in the bank on September 18, at a P/B ratio of 3.8x on 07’E book value. Fitch placed Bank Forum on rating watch positive, while Moody’s moved the bank to under review for a positive increase. The agencies could move Ukraine’s #10 largest bank by assets up to the country ceiling (M: B1; F: BB-) if the acquisition is completed to reflect the strong support potential of Commerzbank.