S&P placed three Ukraine banks on CreditWatch Negative following similar action on Sovereign

/Standard & Poor's, Frankfurt, October 16, 08/ - Standard & Poor's Ratings Services said today that it had placed its 'B+' long-term and 'B' short-term counterparty credit ratings on Alfa-Bank Ukraine (Alfa), JSC KREDOBANK (Kredo), and Ukrsotsbank OJSC on CreditWatch with negative implications. At the same time, the 'uaA-' Ukraine national scale ratings on Alfa and Kredo were also placed on CreditWatch with negative implications. These rating actions follow the placement of the ratings on Ukraine (foreign currency: B+/Watch Neg/B, local currency: BB-/Watch Neg/B, national scale: uaAA) on CreditWatch with negative implications. The rating action on Ukraine reflects our concerns about the impact of a deteriorating economic situation and associated exchange-rate depreciation on the country's financial sector asset quality, especially in light of the high level of private sector foreign currency borrowing. "We expect to resolve the sovereign CreditWatch placement this month, after which we will resolve the CreditWatch placement of the three banks. The ratings on the banks will be affected if any downside action on the sovereign takes place following the CreditWatch resolution," said Standard & Poor's credit analyst Annette Ess. For more information: Annette Ess, CFA, Frankfurt, (49) 69-33-999-157; annette_ess@standardandpoors.com Ekaterina Trofimova, Paris, (33) 1-4420-6786; ekaterina_trofimova@standardandpoors.com Elena Romanova, Moscow, (7) 495-783-40-91; elena_romanova@standardandpoors.com FIG_Europe@standardandpoors.com [2008-10-17]