RA Fitch Affirms Ukraine's PJSC VTB Bank at 'CCC'; Withdraws Ratings
December 12, 2014
Fitch Ratings has affirmed PJSC VTB Bank (Ukraine)'s (VTBU) Long-term foreign currency Issuer Default Rating (IDR) at 'CCC'. At the same time, the agency has withdrawn the bank's ratings. A full list of rating actions is below.
KEY RATING DRIVERS
Fitch has withdrawn VTBU's ratings as the issuer has chosen to stop participating in the rating process. Fitch will no longer provide ratings coverage for VTBU.
VTBU's IDRs factor in the likelihood of support the bank may receive from its majority shareholder, Russia's JSC Bank VTB, which holds a more than 99% stake in VTBU. Fitch's view of potential support considers the close operational links between parent and subsidiary, including the significant proportion of funding from VTB, and the track record of capital and liquidity support, including short-term funding provided in 1H14 and a capital contribution made in 4Q14.
Ukraine's Country Ceiling of 'CCC' limits the extent to which support from the majority shareholder can be factored into the bank's foreign currency IDRs and reflects the heightened risk of capital and/or exchange controls being tightened, to the extent that these would materially constrain or impede the private sector's ability to repay foreign currency obligations. Limited capital controls introduced in February 2014 do not prevent external debt service. VTBU's 'B-' Long-term local currency IDR also takes into account country risks.
Company — VTB Bank Ukraine
Full namePublic Joint-Stock Company "VTB Bank"