Fitch affirms ratings for Ukraine's Pivdennyi Bank, Industrialbank
KYIV. July 16 (Interfax) - Fitch Ratings has affirmed two privately-owned Ukrainian banks: Pivdennyi Bank (PB) and Industrialbank's (INB) Long-term IDRs at "B-", the rating agency said in a press release.
The Outlook on PB is Stable and on INB is Negative, Fitch said.
"The affirmation of PB's ratings reflects the bank's stable franchise in its home region and reasonable liquidity position. At the same time, the ratings take into account high balance sheet concentrations, asset quality concerns, moderate capitalization and modest performance," the press release says.
"The Negative Outlook on INB's rating reflects Fitch's view of further potential franchise deterioration following changes in the ownership of the bank's formerly related party Zaporozhstal (ZS; large Ukrainian steel producer) in 2012, as a significant part of INB's business was generated by ZS and its servicing companies," it says.
PB was the 23rd biggest Ukrainian bank by assets among 175 banks operating in Ukraine as of January 1, 2013. INB was the 56th biggest.