OREANDA-NEWS. September 17, 2010. Fitch rating has affirmed Ukraine's Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B' with a stable outlook, the agency reported Sep 15. With regard to the banking sector Fitch has announced that Ukrainian banking system remains distressed and estimates average non-performing loans including restructured credits, at 50% of the total.

Millennium Capital deems this news as neutral for the listed Ukrainian banks. Fitch estimation of NPLs is higher than our assessment (40%). However, we see that the divergence appears since Fitch projects a portion of the restructured loans to ultimately go delinquent while we don’t deem this amount significant.