The restructuring of the bank is unlikely to affect the financial stability of Lithuania's banking system, the international ratings agency said in a press release.
"As Ūkio Bankas was predominantly deposit funded, accounting for less than 8 percent of total system resident deposits, we do not expect the likely restructuring of the bank to affect the financial stability of Lithuania's banking system," said Ivan Morozov, a credit analyst with S&P.
Nordic banks continue to control about 80 percent of the Lithuanian banking assets, he said.
S&P raised its forecast of Lithuania's net general government debt at the end of 2013 to 39 percent of GDP due to the government's decision to provide a six-year loan of 800 million litas (EUR 232m) to the state company Indėlių ir Investicijų Draudimas (Deposit and Investment Insurance) to pay back Ūkio Bankas' remaining depositors.
The agency has assigned a BBB long-term debt rating to Lithuania, with a stable outlook.