(The following statement was released by the rating agency)
LONDON/MOSCOW, May 20 (Fitch) Fitch Ratings has assigned Ukrsotsbank's (Ukrsots)
upcoming issue of senior unsecured UAH-denominated bonds an expected Long-term
local currency rating of 'B+(EXP)', Recovery Rating of 'RR4' and an expected
National Long-term rating of 'AAA(ukr)(EXP)'. Bonds will be issued during 2013 -
Q114 in eight series (series I through P), of UAH250m each, totalling UAH2bn.
All proceeds from the bond issues will be used to finance the bank's lending
Series I-L bonds will have a fixed interest rate of 12% p.a. until maturity in
2015, with no put option available to bondholders. Series M-P bonds, maturing in
H116, will bear a fixed 12% p.a. interest rate for the first three interest
periods with put option set at the end of the third interest period.
The claims of the bondholders will rank at least equally with the claims of
other senior unsecured and unsubordinated creditors of Ukrsots, save those
preferred by relevant Ukrainian legislation. Under Ukrainian law, the claims of
retail depositors rank above those of other senior unsecured creditors. At
end-Q113, retail depositors accounted for around 39% of Ukrsots' non-equity
funding, according to the bank's local GAAP reporting.
At end-Q113, Ukrsots was the sixth-largest bank in Ukraine by total assets with
a market share of 3.4%.
KEY RATING DRIVERS
The issue's Long-term local currency and National ratings corresponds to
Ukrsots' Long-term local currency Issuer Default Rating (IDR; 'B+'/Stable) and
National Long-term rating ('AAA(ukr)'/Stable), respectively. The issue's
Recovery Rating of 'RR4' reflects average recovery prospects for bondholders in
case of default.
Ukrsots' IDRs, Support and National Ratings are driven by the likelihood of
support it may receive from Italy-based UniCredit S.p.A. ('BBB+'/Negative),
which owns 98.36% of Ukrsots via its Vienna subsidiary UniCredit Bank Austria AG
Any changes to Ukrsots' Long-term local currency IDR and National Long-term
Rating would impact the issue's ratings. Changes to the bank's IDRs would likely
be driven by changes in the sovereign rating. Any change in the propensity and
willingness of the bank's majority shareholder to continue operating in Ukraine
would also affect the IDRs and National Long-term Rating.
Fitch rates Ukrsotsbank's as follows:
--Long-term IDR: 'B', Outlook Stable
--Short-term IDR: 'B'
--Local Currency Long Term IDR: 'B+'; Outlook Stable
--Viability Rating: 'ccc'
--Support Rating: '4'
--National Long-term rating: 'AAA(ukr)'; Outlook Stable
+44 20 3530 1577
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firstname.lastname@example.org; Peter Fitzpatrick, London, Tel: +44 20
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Additional information is available on www.fitchratings.com
Applicable criteria, 'Global Financial Institutions Rating Criteria', 'Recovery
Ratings for Financial Institutions', both dated 15 August 2012, and 'National
Ratings Criteria' dated 19 January 2011, are available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Recovery Ratings for Financial Institutions
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