Fitch updated PrivatBank’s rating to CCC-.

Fitch Ratings has affirmed Joint-Stock Company Commercial Bank PrivatBank’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at CCC- and Long-Term Local-Currency (LTLC) at CCC. The Viability Rating (VR) has been affirmed at CCC-. The IDRs do not carry an Outlook at this level. The Government Support Rating (GSR) has been downgraded to No Support from CCC-. A full list of rating actions is below.

The downgrade of the GSR reflects Fitch’s belief that in the event of a material capital shortfall, PrivatBank would likely operate under regulatory capital forbearance in the near term rather than receive prompt extraordinary capital support from the sovereign.

Key rating drivers:

1. High Risk of Default: PrivatBank’s LTFC IDR reflects Fitch’s view that a default on its senior FC obligations remains a real possibility due to the war.
2. No External Debt Obligations: While FC repayments remain subject to considerable uncertainty in the sector, PrivatBank’s non-equity funding consists almost fully of customer deposits.
3. Lower LC Default Risk: PrivatBank’s CCC LTLC IDR, one notch above its LTFC IDR, reflects limited regulatory restrictions and constraints on LC operations.