S&P cuts three Ukrainian banks

Standard & Poor's said it lowered its long-term counterparty credit ratings on Alfa-Bank Ukraine, JSC Kredobank and Ukrsotsbank OJSC to B from B+ and removed them from Creditwatch where they were placed with negative implications on Oct. 16.

The B short-term ratings were affirmed, the agency said.

At the same time, the Ukraine national-scale ratings on Alfa-Bank and Kredo were lowered to uaBBB from uaA-, S&P noted.

The outlook on all three is negative.

According to S&P, these rating actions follow the lowering of the long-term foreign currency sovereign credit rating on Ukraine to B from B+ and that on the local currency rating to B+ from BB-.

The downgrade of the sovereign reflects the rising cost to the Ukrainian government of a necessary recapitalization of the banking sector against the backdrop of declining growth and heightened exchange rate risk, the agency added.

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