S&P downgrades PrivatBank to the default level of prinuditelnoj the conversion of debt.
International rating Agency Standard&Poor’s (s&P) downgraded the rating of PrivatBank (Dnieper) to the level of “SD” (selective default) from “R” (under the supervision of the regulatory body).
About it reported in a press release from the Agency, reports the Internet-the edition with reference to .
According to the document, the rating action is due to the fact that the Deposit guarantee Fund of natural persons, who in December 2016 has introduced a temporary administration in the Bank, made the conversion of three issues of Eurobonds of PrivatBank in the capital.
“In accordance with the criteria of Agency, we consider the conversion of debt to equity as a selective default on obligations of the Bank, as we understand that the Noteholders will not receive payments under this operation. We assess this situation as selective, not a General default as against other liabilities of PrivatBank in the present time was not defaulted”, – noted in a press release.
At the same time, the document indicates that S&P plans to review the rating of PrivatBank after receiving enough information to assess its creditworthiness after the government recapitalization of financial institutions.
Recall that the government on the proposal of the national Bank and the shareholders of PrivatBank 18 December adopted a decision on nationalization of financial institutions: the state will receive 100% of the share capital of PrivatBank, and the volume of issue of bonds of internal state loan for these purposes is estimated in the range of 116.8-148 billion.After the nationalization of Bank, S&P lowered the long-term and short-term credit ratings of PrivatBank to the level of “R” with “B” and “C” respectively.