International rating agency Fitch Ratings has confirmed Oschadbank’s ratings

On July 18, 2019, the rating agency Fitch Ratings has confirmed Oschadbank’s Long-Term Foreign and Local Currency Issuer Default Ratings of “B-” (stable outlook), Short Term Issuer Default Rating of “B”, National Long Term Rating of “AA(ukr)” with a stable outlook.

Oschadbank’s ratings remain in line with the sovereign rating (“B-“). The bank’s Viability Rating reflects its strategic position as one of the biggest financial institutions of Ukraine causing a high level of correlation with the state economy and state-owned sector in particular.

In Fitch Ratings’ opinion, after a positive financial result gained in 2018, Oschadbank’s performance will remain profitable by the end of the current year considering the moderately improving economy. In addition, as a result of IFRS 9 implementation, the bank has improved its reserve coverage of the loan portfolio.

Eurobond repayments (USD 0.5 billion including coupons paid in 2019 and another USD 0.5 billion including coupon next year) were made mostly from the cash sourced from the repayments on the sovereign bonds. Operational liquidity did not suffer from the repayments.