KIEV, March 23 – Fitch Ratings has downgraded JSC The State Export-Import Bank of Ukraine (Ukreximbank) and JSC State Savings Bank of Ukraine (Oschadbank) Long-term foreign currency Issuer Default Ratings (IDRs), and their foreign currency senior debt ratings, to 'CC' from 'CCC'.

Fitch affirmed the banks' Long-term local currency IDRs at 'CCC', the rating agency said in a statement.

According to Fitch, the downgrade reflects its view that defaults by both banks on their external debt obligations now appear probable. This follows the announcement by Ukraine's Ministry of Finance on March 13, 2015 on the sovereign's external debt restructuring, in which the Ministry indicated that the external debt of Ukreximbank and Oschadbank, alongside that of certain other quasi-sovereign entities, "will be included in the debt operations". At the same time, the Ministry stated that "each entity will undergo a separate process targeting its specific situation".