S&P lowers Privatbank ratings to "selective default"
The organization promised to revise the ratings of the bank after getting enough information to assess the creditworthiness of the bank after its government recapitalization
Ratings of the PrivatBank reduced from "R" ("Under the supervision of the regulatory agencies") to "SD" - "selective default". It is reported by the Standard & Poor's Financial Services LLC Financial Markets.
"Following the introduction of the interim administration in PrivatBank, Guarantee Fund deposits of natural persons on December 26, 2016 declared the forced conversion into capital of the bank (bail-in) of the three outstanding issues of loan participation. Due to the absence of information about the default on other obligations of the PrivatBank we consider the conversion of debt into equity as a selective default (SD). In this regard, we downgrade the ratings of Privatbank from "R" ("under the supervision of regulatory agencies") to "SD", reads the statement.
Note that ratings of the PrivatBank are going to be reconsidered, when there is sufficient information to assess the creditworthiness of the bank after its government recapitalization.