Moody’s affirmed long-term credit rating of Bank Vozrozhdenie

20 October 2008

Moody’s Investors Service announced today the revised credit opinion on Bank Vozrozhdenie. The foreign/local currency deposit ratings of Bank Vozrozhdenie were affirmed on the level “Ba3” with “Stable” outlook. Financial strength rating retains on the level “D-”

“Affirmation of Bank Vozrozhdenie international ratings has once again confirmed soundness of our strategy focused on operations with clients, — said Andrey Shalimov, Head of Treasury, — we have reliable sources of funding as well as stable and diversified funding base from internal financial markets. During 9 months of the current year the Bank has doubled the amount of funds attracted from corporate clients that additionally strengthened our funding base. The liquidity cushion accumulated from the beginning of 2008 allows the bank to continue servicing our clients in a regular manner. International credit ratings also gives us an access to funding from the Bank of Russia and the Ministry of Finance”, — added Andrey Shalimov.

The rating is supported by the ongoing strengthening of the bank’s franchise in SME and retail segments, its relatively conservative risk profile compared to similarly rated Russian peers and by its satisfactory financial fundamentals. At the same time, the rating is constrained by the operating and regulatory environment in Russia, by the relative lack of debt and capital markets funding options currently available to V-bank (similarly to other Russian banks) and by still developing risk management practices of the bank.

Among Bank Vozrozhdenie credit strengths Moody’s has mentioned relatively good geographical diversification of business, solid fee-generating capacity, good profitability, sound customer funding base supported by a high proportion of retail deposits

Vozrozhdenie Bank, a community bank for companies and individuals, was founded in 1991. (General License from the Central Bank of the Russian Federation # 1439, March 24, 2003.) Among the Top 30 Russian Banks in the Central Banks rating, its network includes 174 offices and over 600 ATMs in 20 regions of Russia. The Bank provides more than 1,200,000 individual and 50,000 corporate clients with a range of services, from savings accounts, payment handling, payroll management, to mortgages, bank cards and business.

Standard & Poor’s affirmed long-term counterparty credit rating of Bank Vozrozhdenie
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