April 24, 2019 / 4:39 PM / 4 months ago

Privatbank case interference would hurt Ukraine's credit rating: Moody's

FILE PHOTO: Logo of PrivatBank, the Ukraine's biggest lender, is seen on a bank's branch in Kiev, Ukraine April 18, 2019. REUTERS/Vasily Fedosenko

LONDON (Reuters) - Ukraine’s credit profile would be badly damaged, Moody’s warned on Wednesday, if the country’s new president interfered in an acrimonious legal battle over the 2016 nationalization of the country’s biggest lender Privatbank.

Moody’s said the banking sector changes, including the Privatbank move, had been one of the biggest economic reform successes of the last five years.

“Any threat to that progress – such as the potential that the new president would interfere in favor of (former owner) Igor Kolomoysky’s appeal of the Privatbank nationalization in local courts – would constitute a serious setback to the reform agenda,” Moody’s said.

“While not our base case as we attach a low probability to such a scenario, it would have a material adverse impact on Ukraine’s credit profile if it were to materialize.”

Reporting by Marc Jones; editing by Tom Wilson

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