Fitch Ratings on Dec. 20 downgraded PAO KB Privatbank's viability rating to "f" from "ccc", saying the bank has failed, as reflected by the scale of its reported recapitalization needs.

At the same time, the agency placed the bank's BB(ukr) national long-term rating, C short-term foreign-currency issuer default rating and CCC long-term local- and foreign-currency issuer default ratings on Rating Watch Evolving.

The ratings actions follow the Ukrainian authorities' announcement that Privatbank will be nationalized to address its solvency problems. Fitch said the placing of the issuer default ratings on Rating Watch Evolving reflects the uncertainty about whether senior creditors will bear losses under the recapitalization process.

Fitch affirmed the Ukrainian lender's support rating and support rating floor at 5 and No Floor, respectively.