KIEV, April 20 – Standard & Poor's Ratings Services has lowered its long-term counterparty credit rating on Ukraine's PrivatBank to 'CCC-' from 'CCC'.

The outlook is negative, S&P said in a statement.

The 'C' short-term counterparty credit rating was affirmed.

According to S&P, the downgrade follows the lowering of the rating agency's long-term sovereign credit rating on Ukraine to 'CC' on April 10, 2015. S&P says that sovereign downgrade indicates that Ukraine's default on its foreign currency central government debt is a virtual certainty. The consequences of a sovereign default are unpredictable, but the rating agency considers that they could be severe for the financial profile of any commercial bank in Ukraine, even a strong one like PrivatBank in the local context.