Standard & Poor’s demotes Alfa-Bank Ukraine’s rating

The international rating agency demoted Alfa-Bank Ukraine’s long- and short-term Contractor Credit Rating from СС/С to SD/SD. The bank’s national scale rating was also decreased from uaCC to SD.

Standard & Poor’s Credit Rating Service has also removed all these ratings from their CreditWatch list a month after they had been placed there with Negative rating outlook on July 3, 2009.

‘The Group supports Alfa-Bank Ukraine’s liquidity and market capitalization and has recently helped the bank to make an advance payment on their bond exchange deal. About a quarter of the bank’s liabilities is made up of the funds of Alfa-Bank Ukraine-related companies. However, the Group’s help was insufficient to prevent debt restructuring. This is why we do not consider this bank Alfa-Group’s strategically important daughter enterprise, under our methodology, that is,’ says the agency’s analyst.