Moody's has improved its outlook on the rating of Oschad's long-term deposits and unsecured debt from "negative" to "stable"

Yesterday, Moody's Investors Service affirmed Oschadbank’s long-term deposit rating, long-term senior unsecured debt rating, and long-term counterparty risk rating at Caa3 and changed the outlook from “negative” to "stable". The stable outlook reflects Moody's view that the sustainability of both Oschadbank and the operating environment in Ukraine can ensure the bank's creditworthiness.

At the same time, Moody's upgraded Oschadbank's ratings on the national scale - the bank's long-term national scale deposit rating was raised from "Caa3.ua" to "Caa2.ua" and the long-term national scale counterparty risk rating from "Caa3.ua" to "Caa2.ua".

In its report, the agency noted that the quality of Oschadbank's assets in 2023 remained stable. As of February 1, 2024, the bank demonstrated good profitability indicators, reaching a return on assets of 1.4%; at the same time, the regulatory capital adequacy ratio (N2) remained at around 14%, and core capital (N3) at 9%, which is above the regulatory minimums of 10% and 7%, respectively.

It is also noted that Oschadbank maintains significant reserves of liquid assets, which as of the end of 2023 amounted to more than 60% of total.