"Fitch Ratings has downgraded CJSC Privatbank and JSC State Savings Bank of Ukraine's (Oschadbank) Long-term foreign currency Issuer Default Ratings (IDRs) to 'C' - from 'CCC' and 'CC', respectively. A full list of rating actions is at the end of this rating action commentary.
The downgrade of the Long-term foreign currency IDRs reflects Fitch's view that defaults by the two banks on certain senior debt obligations (eurobonds) are now almost inevitable. This follows the recent launch of consent solicitations by both banks to extend the maturities of these bonds. At the same time, Fitch recognises that the banks continue to service their other obligations, including customer deposits."