OREANDA-NEWS. Fitch Ratings has today placed Ukraine-based Bank Khreschatyk's ("Khreschatyk") 'B' Issuer Default rating ("IDR") and '4' Support rating on Rating Watch Negative ("RWN"). The bank's other ratings are affirmed at Short-term 'B' and Individual 'D/E'.

The RWN on Khreschatyk's ratings reflects the increased probability that the city of Kiev, Khreschatyk's majority shareholder with a direct 51.2% stake, will not participate in the current UAH290 million (USD57.4m) share offering. This is likely to result in a reduction of the city's stake to approximately 25%.

At present, Khreschatyk's IDR, Short-term and Support ratings are driven by the moderate probability of support being forthcoming for the bank from the city in case of need. However, in Fitch's view this probability would decline should the city's stake fall significantly.