November 10, 2009 |
|Ongoing rating review reflects uncertainties as regards the bank's future|
Moscow, November 10, 2009 -- Moody's Investors Service said today that it is
continuing its rating review of Bank Nadra (Nadra).
On 12 February 2009, Moody's downgraded the bank's deposit ratings to
Caa2 and National Scale Rating (NSR) to B3.ua and placed them on review for
possible further downgrade. Nadra's bank financial strength rating
(BFSR) was downgraded to E with a stable outlook. These actions were
prompted by Nadra being placed into temporary administration by the National
Bank of Ukraine (NBU) following a run on deposits at the bank that could not
be contained by liquidity support provided by the NBU to the bank at the
Separately, on 26 June 2009, Moody's downgraded Nadra's long-term foreign
currency senior unsecured debt rating to C from Caa2, with a stable outlook,
based on its expectation that the bank's senior unsecured creditors will
incur significant losses consistent with a C rating category, according to
the terms of the restructuring recently proposed by the bank to the
The bank's bondholders and the majority of its wholesale creditors have so
far not accepted the original restructuring proposal by the bank and the
debt restructuring negotiations are continuing.
Moody's review for a possible downgrade of the bank's deposit ratings
continues to capture the present uncertainty with regard to the future of
Nadra, as the NBU and the Ukrainian government are currently considering
solutions concerning the bank's future. These solutions include a
possible recapitalisation of the bank by the government in the event that
the bank successfully restructures its debt to wholesale creditors and
the bondholders, but they may also include a liquidation.
If the bank successfully restructures its liabilities to foreign creditors
and is recapitalised by the Ukrainian government, Moody's would be
likely to upgrade Nadra's deposit ratings to reflect improvements in the
bank's liquidity profile and capitalisation. However, if the decision is
made to liquidate the bank, its ratings would be likely to be downgraded,
possibly by several notches, given that, in the event of a liquidation,
the expected recovery rate to the bank's depositors would likely be below
that implied by a Caa2 rating.
The principal methodologies used in rating Bank Nadra were "Bank Financial
Strength Ratings: Global Methodology" and "Incorporation of Joint-Default
Analysis into Moody's Bank Ratings: A Refined Methodology". These can be
found at www.moodys.com in the Rating Methodologies sub-directory under
the Research & Ratings tab. Other methodologies and factors that may have
been considered in the process of rating these issuers can also be found
in the Rating Methodologies sub-directory on Moody's website.
Headquartered in Kiev, Ukraine, Bank Nadra reported consolidated total
Ukrainian Accounting Standards (UAS) assets of UAH26.3 billion (USD3.4
billion) at 30 June 2009.
Company: Nadra Bank
|Full company name||PJSC "Bank "Nadra"|
|Country of risk||Ukraine|