Service credit rating Standard & Poor's (S&P) lowered the long-term credit rating of Ukrainian "PrivatBank" from "CCC" to "CC". The rating outlook remains negative, states the press service of S&P.
Bank’s downgrade is caused by the announcement of 26 June 2015 a memorandum about obtaining the consent of Eurobonds holders that must be repayed in 2015 and 2016 respectively, with the change in the terms of two Eurobonds series of "PrivatBank". Particularly, "PrivatBank" offers extend maturity of Eurobonds in the amount of $ 200 mln. repayable in September 2015, to 2018 and the Eurobond issue volume of $150 mln. maturing in February 2016 to 2021.
S&C believes in the probability of default on Eurobonds maturing in 2015 and 2016. The failure of the payment will be considered as a selective default.
"PrivatBank" offered holders of its Eurobonds two issues extend payments on bonds. Extension of maturities will increase its capitalization and reduce pressure on the currency market of the country.
As was reported yesterday, “Privatbank” appealed to the international arbitration in the Permanent Court of Arbitration (Hague) with a lawsuit against Russian Federation on the loss of bank’s investments in Crimea.