Moody`s Investors Service assigned a `Ba2` long-term foreign currency rating to the loan participation notes to be issued on a limited recourse basis by Credit Suisse International for the sole purpose of funding a loan to Savings Bank of Ukraine, according to Thompson Financial.
The ratings agency said the outlook on the rating is positive.
Moody`s said the rating is based on Savings Bank`s `Baa2` global local currency rating, which imputes a full systemic support expected to be provided to Savings Bank, as a fully government-owned bank, in the event of distress. But the rating agency added the holders of the notes will be relying for repayment solely and exclusively on the ability of Savings Bank to make payments under the loan agreement.
The rating also reflects the probability of a sovereign default implied by Ukraine`s `B1` foreign currency bond rating, and the likelihood that in the event of default the Ukrainian government could impose moratorium on foreign currency obligations, it added.
Moody`s said the rating has also pierced Ukraine`s `Ba3` foreign currency sovereign ceiling for bonds.
