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Ukraine: Moody's To Upgrade Ukrsotsbank Rating
Moody's placed Ukrsotsbank ratings on revision for possible upgrade.
Moody's placed Ukrsotsbank ratings on revision for possible upgrade. In particular, Moody's revises Ba1 long-term deposits in national currency rating and Ba3 bank's Euronotes ratings. The agency already upgraded Ukrsotsbank's financial strength rating from E+ to D-. The rating has positive outlook. Long-term rating on obligations in foreign currency was confirmed on the previous B2 level. The decision to revise the ratings of the bank was made after the agreement to sell 88.1% stake in Ukrsotsbank to Italian Banca Intesa for US$1.16 billion. This includes US$60 million of investments in authorized capital of the local bank. Banca Intesa considers that 100% ownership will cost US$1.31 billion. According to the Italian bank, the transaction will be completed in two steps as the capital increase should be carried out as well. The first step is expected to be completed in May after the receipt of all regulatory approvals. The second step is expected to be finished not later than September, once the capital increase formalities are dealt with.