Standard & Poor's lowers announced that it temporarily downgraded its long- and short-term counterparty credit ratings on Ukraine-based PrivatBank to “SD.”
This technical procedure is obligatory due to PrivatBank signing a supplemental loan agreement with its investors regarding $200 million Eurobonds, according to S&P.
It should be noted that on September 8, 2105, PrivatBank signed a supplemental loan agreement regarding its $200 million Eurobonds due September, 2015. According to this agreement, the maturity date is extended to January 15, 2016; and the interest rate is raised to 10.25%.
S&P notes that PrivatBank has initiated the extension of Eurobond maturities in light of the very difficult economic situation in Ukraine.
Memo: PrivatBank received very high support of the investors while extending 2015 Eurobonds maturity. A total of 85.17% of bondholders have voted, with 96.94% of them supporting the extension. These are one of the highest figures of support among similar transactions of the Ukrainian issuer banks.