January 26, 2010 |
|London, 25 January 2010 -- Moody's Investors Service has today downgraded|
Ukrprombank's local and foreign currency deposit ratings to C from Caa3, and
the National Scale Rating (NSR) to C.ua from Caa3.ua. Ukrprombank's E Bank
Financial Strength Rating (BFSR) remains unchanged. All global scale ratings
of Ukrprombank carry a stable outlook.
Moody's downgrade of the bank's ratings follows the decision of the central
bank (National Bank of Ukraine or NBU) on 21 January 2010 to withdraw
Ukrprombank's banking license and initiate liquidation procedures. According
to the NBU, the license was withdrawn due to the bank's poor financial
position and the need to preserve its remaining assets. Ukrprombank had been
under NBU's temporary administration since January 2009. In November 2009
the Ukrainian government decided to transfer the deposits and performing
assets of Ukrprombank to the state-owned Rodovid Bank.
Moody's understands that most of Ukrprombank's deposits have already been
transferred to Rodovid Bank, while the mechanism of the bank's remaining
assets distribution has not yet been finalised. Given that the bank has
completely depleted its equity and there is uncertainty regarding the
distribution of the bank's remaining assets, Moody's believes that any
recovery for Ukrprombank's creditors is likely to be limited.
Moody's notes that, as of the date of this rating action, Ukrprombank had no
senior unsecured, subordinate or structured finance obligations rated by
The previous rating action on Ukrprombank was implemented on 10 November
2009, when Moody's downgraded Ukrprombank's local and foreign currency
deposit ratings to Caa3 from Caa2 and the National Scale Rating (NSR) to
Caa3.ua from B3.ua, and placed these ratings on review for a possible
The principal methodologies used in rating Ukrprombank are "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
Ukrprombank can also be found in the Rating Methodologies sub-directory
on Moody's website.
Headquartered in Kiev, Ukraine, Ukrprombank reported total assets of
UAH10.2 billion and total equity was a negative UAH1.8 billion according
to Ukrainian Accounting Standards at end-Q3 2009.
|Full company name||Ukrainsky Promyslovy Bank Ltd|
|Country of risk||Ukraine|