Fitch changed the ratings of two Ukrainian state banks.

The international rating agency, Fitch Ratings, raised the stability ratings of two state banks of Ukraine – Oschadbank and Ukrgasbank – and confirmed the rating of another state bank – Ukreximbank. Thus, the stability ratings of Oschadbank and Ukrgasbank were increased from CC to CCC-, and their long-term issuer default ratings in foreign and national currencies were confirmed at ССС- and ССС, respectively.

“The increase in stability rating reflects our view of a moderately lower bankruptcy risk for Oschadbank and Ukrgasbank due to more stable asset quality and profitability due to a less rigid operating environment than we previously expected,” the agency notes. However, the state support ratings for the GSR of both banks were lowered from CCC-to no support.