S&P lifts three Ukraine banks to stable

Standard & Poor's said it revised to stable from negative the outlooks on Ukraine-based banks PrivatBank, Alfa-Bank Ukraine and PJSC Kredobank.

The agency also said it affirmed the B- and C long- and short-term counterparty credit ratings on all three banks and the uaBBB- national scale ratings on Kredobank and Alfa-Bank Ukraine.

The revision of the outlooks follows a similar action on the sovereign rating outlook, S&P said.

The sovereign's creditworthiness is considered a key risk factor for Ukrainian banks because of their high operational, funding and asset exposure to the Ukrainian economy, the agency said.

Receding sovereign risk could help the banks stabilize their financial profiles, S&P added.

Still, the B- ratings on the banks continue to reflect a view that the country's economic prospects remain weak despite the promised support package from Russia, the agency said, and that operating conditions for the banks remain risky.

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