International rating agency Fitch Ratings upgrades Oschadbank to “B” with a positive outlook

Oschad News

On 24 September 2019 Fitch Ratings upgraded JSC Oschadbank’s Long-Term Foreign Currency Issuer Default Rating (IDR) to “B” from “B-“. The Outlook is Positive.

The bank’s Viability Rating («b-») is also placed on Rating Watch Positive (RWP). According to the agency, the RWP “reflects Fitch’s expectations that the improving macroeconomic stability in Ukraine, the country’s reasonable economic prospects and further stabilisation in the sovereign’s credit profile should have positive implications for the bank’s standalone credit profile”. Fitch’s "view of the operating environment in Ukraine also factors in recovering performance of the banking sector, improved solvency levels and lower refinancing risks”.

On top of the positive developments described above, the agency also notes that the Ukrainian authorities’ ability to provide support to the bank, in case of need, has improved. At the same time, the state’s “propensity” to provide support to Oschadbank is “high”, taking into account the bank’s “100%-state ownership, high systemic importance and the record of capital support under different governments”.

Oschadbank’s Short Term Issuer Default Rating of “B”, National Long Term Rating of “AA(ukr)” with a stable outlook.

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