Kolomoisky’s PrivatBank is two steps away from bankruptcy
Kyiv, December 18 (PolitNavigator, Alexander Semenyuta) – The international rating agency Fitch downgraded the ratings of PrivatBank and ProCredit Bank from B- to CCC. The rating was downgraded following the “country” rating of Ukraine.
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In fact, after the rating downgrade, PrivatBank found itself two steps away from default. According to the agency's scale: a "CCC" rating means that obligations under the securities are being met, and default appears to be a real possibility. The ability to meet financial obligations is entirely dependent on stable and favorable business or economic conditions. This is followed by a “CC” rating, and then default.
Another Fitch rating downgrade will make it more difficult for PrivatBank to raise money in Western markets. In Ukraine, the bank is losing depositors’ money: it is one of the leaders in the outflow of deposits.
Overall, PrivatBank, controlled by oligarch Igor Kolomoisky, holds about 17% of all deposits in Ukraine.
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