Fitch upgrades PrivatBank to “В”, the Outlook is Positive

The international rating agency Fitch Ratings informed that the Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDRs) of PrivatBank have been upgraded to “B”, the Outlooks are Positive. According to Fitch, the Support Rating Floor (SRF) of the bank has been accordingly revised to “B”, with the Viability Rating (VR) affirmed at “b-” and placed on Rating Watch Positive. The SRF reflects Fitch's view that, in case of need, the propensity to provide support by the Ukrainian authorities to PrivatBank remains high, given its systemic importance.

According to Fitch, the Short-Term Foreign-Currency IDR of PrivatBank is affirmed at “B”, while the Long-Term National Rating at “AA (ukr)” reflecting its high creditworthiness relative to peers within Ukraine.

Fitch analysts view Privat's state ownership as non-strategic given that it arose from a state-led rescue and the authorities plans to dispose of a controlling stake in the bank, potentially via an IPO, by end-2022.