Moody's on April 7 downgraded Ukraine-based PAO KB Privatbank's long-term foreign-currency senior unsecured debt rating to C from Ca.
The downgrade reflects Moody's expectation that senior debt holders will sustain material losses as a result of Eurobonds' bail-in and conversion into equity.
After nationalizing the bank in December 2016, the government provided 117 billion Ukrainian hryvnia to recapitalize it and bailed-in its non-deposit unsecured creditors for the amount of 29.4 billion Ukrainian hryvnia including bondholders of $595 million.
Moody's said it will withdraw the debt rating of Privatbank.
As of April 6, US$1 was equivalent to 27.03 Ukrainian hryvnia.