Privatbank -- Moody's announces completion of a periodic review of ratings of Privatbank

Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Privatbank and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. 

The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

Privatbank's B3 long-term local currency deposit rating incorporates its b3 BCA and Moody's assessment of a very high probability of support from the government of Ukraine (B3). This support assumption does not result in any rating uplift because the government rating is at the same level as the bank's BCA. Privatbank's long-term foreign currency deposit rating of Caa1 is capped by Ukraine's foreign currency deposit ceiling, also Caa1.

Privatbank's BCA is constrained by the sovereign rating and reflects (1) the high interlinks between the bank's standalone credit fundamentals and the sovereign's creditworthiness, given Privatbank's high direct exposure to sovereign debt, (2) its strong profitability metrics, and (3) the bank's low reliance on market funding and high level of liquid assets. At the same time, these strengths are moderated by deteriorating economic conditions in the country which weigh down on the bank's asset quality and profitability.

This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.

The principal methodology used for this review was Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.