Fitch Ratings has assigned JSC State Savings Bank of Ukraine's (Oschadbank) Series C and D bonds expected Long-term local currency ratings of 'B', expected National Long-term ratings of 'AA-(ukr)' and a Recovery Rating of 'RR4,' the agency said in a press release.

The Series C and Series D bonds are expected to amount to UAH 500 million each and have maturities of two and five years, respectively.

The final ratings are contingent on the receipt of final documentation conforming materially to information already received.

Oschadbank has a Foreign Currency Long-term Issuer Default Rating (IDR) at 'B', a Local Currency Long-term IDR at 'B' with Stable Outlook, a Short-term IDR at 'B', an Individual Rating at 'D/E', a Support Rating at '4' and a National Long-term at 'AA-(ukr)', Stable Outlook.

Fitch understands that the bank's obligations under the new issues will rank at least equally with all its other unsecured and unsubordinated creditors, except those preferred by relevant Ukrainian legislation. Under Ukrainian law, the claims of retail depositors rank above those of other senior unsecured creditors. At the end of the first half of 2010, retail depositors accounted for 41% of the bank's non-equity funding, according to the bank's statutory accounts.

Oschadbank was the third-largest Ukrainian bank by assets at the end of the first half of 2010. It is the successor of the Ukrainian branch of the former Soviet Union savings bank and has the largest branch network in the country with over 6,000 outlets.

The Cabinet of Ministers of Ukraine holds 100% of the bank's shares.

UKRINFORM