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21.07.2009
Credit-Rating: Ukrgasbank JSB’s issue rating remains unchanged
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that the long-term credit ratings assigned to Kiev-based Ukrgasbank JSB (‘bank’) and to its bonds (of series A, B, D, E) for the amount of UAH350m remain unchanged at uaBBB. The ratings remain on Rating Watch List with negative outlook.
In early 2009 the Ukrainian Government adopted a resolution on recapitalization of open joint-stock company Ukrgasbank JSB with the state funds. The principal condition for the recapitalization is arrangement by the Expert and Analytical Council on the issues concerning the participation of the state in capital of banks the conditions of the restructuring (on the types of obligations determined by the Council) the bank’s debts, which will be formalized in relevant documents. The Ministry of Finance of Ukraine has issued bonds for the amount of UAH3.1bn due in 2017-2019 for the purposes of recapitalization in equal portions and with interest rate at 9.5% p.a. On July 6, 2009 the National Bank of Ukraine registered the bank’s new Statute concerning increase of the bank’s authorized stock to UAH3.8bn.
On July 16, 2009 the bank made payments on series A bonds for the 12th coupon period. Regarding the series A bonds, which have been offered for before-due repayment, Credit-Rating notes that in order to execute the Government’s resolution and to restore its liquidity the bank has offered holders of series A, B, C bonds a procedure of restructuring. Credit-Rating follows the negotiations which are to be accomplished soon. Further agency’s actions are contingent upon outcomes of the negotiations.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
The Rating Watch List is intended to inform financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing trends, which may negatively affect creditworthiness of a rating’s bearer.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic
departmentSergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis Rudenko
DRudenko@credit-rating.ua
