OREANDA-NEWS. One of the world's leading rating agencies has affirmed ratings on PrivatBank, noting its market leadership and sustainability.

On December 22, 2014, Standard & Poor's Ratings Services affirmed its 'CCC/C' long- and short-term counterparty credit ratings on PrivatBank which is one notch above Ukraine's foreign currency sovereign credit rating. PrivatBank's standalone credit profile (SACP) has been affirmed at "b-" that is 3 notches above Ukraine's foreign currency rating. Outlook on the bank's ratings has been revised to "negative" due to the downgrade of the sovereign rating on December 19th.

According to the agency's report, ratings on PrivatBank reflect its "strong" business position and "adequate" risk position. The ratings also incorporate the bank's dominant position in the banking sector of Ukraine and Eastern Europe, stronger assets quality, and lower single-name concentrations.

S&P noted that PrivatBank's creditworthiness was sufficient to withstand a foreign currency sovereign default. According to the results of the simulated liquidity and capital stress-tests, PrivatBank will not allow a default on its foreign or local currency obligations.Evaluation of PrivatBank's stand-alone credit profile (SACP) at "b-" indicates that PrivatBank remains one of the strongest banks in the Ukrainian banking system.

According to S&P analysts, PrivatBank will be able to pass the stress test thanks to one of the best asset quality metrics in the Ukrainian banking system. Estimated NPLs (loans overdue by more than 90 days) at 2014 year end will make up about 8% which is significantly below the overall weak estimate for the banking system of about 40-50%.

To be reminded, on December 19th, 2014 S&P downgraded the long-term foreign and local currency sovereign credit ratings on Ukraine from "CCC/B-" to "CCC-/ CCC+" and revised the rating outlook to Negative.

In 2014, PrivatBank retained the eighth position in terms of capital in the ranking of the Top-10 largest banks in Central and Eastern Europe within the Top-1000 world leading banks ranking annually published by The Banker British magazine.