October 05, 2011 | Cbonds
|London, 05 October 2011 -- Moody's Investors Service has today placed the|
Ba1 long-term local currency bank deposit ratings of OTP Bank (Ukraine)
(OTPU) on review for downgrade. The bank's D- standalone Bank's Financial Strength Rating (BFSR), B3 long-term foreign currency deposit rating, and Not-Prime short-term local and foreign currency deposit ratings remain unchanged, maintaining a stable outlook. OTPU's Aa1.ua National Scale deposit Rating also remained unchanged but carries no specific outlook.
According to Moody's, the review for downgrade of the Ba1 ratings of OTPU reflects the fact that, on 4 October 2011, Moody's placed on review for downgrade the D+ BFSR of the parent OTP Bank Hungary. If the review of the parent's BFSR concludes in a downgrade, OTPU's local currency deposit rating will, in turn, be downgraded.
For detailed rating considerations of the review of the BFSR of OTP Bank
(Hungary) please refer to www.moodys.com.
OTPU's Ba1 deposit ratings incorporate Moody's assessment of a very high probability of parental support from OTP Bank (Hungary), and consequently receive a two-notch uplift from OTPU's Ba3 standalone credit strength.
Moody's assessment of a very high probability of parental support is based on (i) significant operational integration, (ii) the strong strategic fit of OTPU with OTP Bank Group, as Ukraine is one of three strategic foreign markets for the group, and (iii) the parent's demonstrated willingness to provide ongoing capital and liquidity support. At the same time, there remains the risk that the Ukrainian market could lose its attractiveness, such that OTPU may be considered non-strategic at a future date.
Company: OTP Bank (Ukraine)
|Full company name||Public Joint-Stock Company OTP Bank|
|Country of risk||Ukraine|