On 30 December 2008 Moody's Investors Service changed the outlook from stable to negative on the long-term global local or foreign currency deposit/debt ratings of 19 Ukrainian banks, including VAB Bank, and affirmed the assigned ratings. Moody's also downgraded the National Scale Rating (NSR) of 6 banks, VAB Bank among them. Currently VAB Bank’s NSR is A3.ua.
At the same time, Moody’s changed from stable to negative the outlook on the bank financial strength ratings of 15 Ukrainian banks. This did not affect VAB Bank’s existing rating and its outlook, which remained at “E+” with stable outlook.
The current change in rating outlooks reflects a substantial increase, in Moody’s view, of credit and liquidity risks for the Ukrainian banks, arising from the steep depreciation of the Ukrainian hryvna over the past few months.
Back in October 2008 Moody’s Investors Service downgraded the global local currency deposit ratings and the national scale ratings of 12 Ukrainian banks and changed the outlook from positive to stable on the B2 long-term global foreign currency deposit ratings of 21 Ukrainian banks. VAB Bank’s ratings were not affected then.
“This is the second rating action by the international rating agencies triggered by weakening of hryvna and concerns about the increased credit risks for the Ukrainian banks. We understand that it is the right time for the banks to find solution with the borrowers, to help them handle the exchange rate hike and minimize the level of non-performing loans. Now, it is only concerted actions of the government, NBU and commercial banks that can remedy the difficult situation”, commented Lukas Tursa, VAB Bank Deputy Chairman.
Reference data
Vseukrainsky Aksionerny Bank (VAB Bank) has been operating in the Ukrainian financial market since 1992 and belongs to the group large banks in Ukraine according to NBU. In October 2006, VAB Bank became a member of VAB Group. Branch network consists of 25 branches and 143 outlets throughout Ukraine and a representative office in Budapest (Hungary). A large international company, TBIF Financial Services (Amsterdam, the Netherlands), is among the bank’s shareholders. Total assets of VAB Bank amounted to UAH 6.7 billion as of 01 July 2008.
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