The bank's baseline credit assessment ("BCA"), adjusted BCA, long and short-term local and foreign currency deposit ratings, and its long and short-term Counterparty Risk Assessments were unaffected by today's rating action, Moody's said in a new global credit research.

Read alsoReuters: Flaring Ukraine tensions negative for Russia rating - Moody'sThe downgrade of PrivatBank's senior unsecured debt rating to C from Ca primarily reflects Moody's expectation that senior debt holders will sustain material losses as a result of bail-in and conversion into equity.

The C senior unsecured debt rating does not carry outlooks. Moody's will then withdraw the C foreign currency senior unsecured debt rating of PrivatBank.

As UNIAN reported, the Cabinet of Ministers at its extraordinary meeting on Sunday, December 18, decided to transfer PrivatBank to 100% state ownership. The decision was made based on the results of the meeting of the National Security and Defense Council.

Later, PrivatBank replaced bonded obligations for $595 million to the SPV (UK) for loan participation notes.