Moody’s Interfax Rating Agency Confirms Vozrozhdenie Long-Term Rating at Baa2 (rus)

4 March 2005

MOSCOW. March 4 (Interfax) — Moody’s Interfax Rating Agency has confirmed its long-term rating on the national scale for Vozhrozhdenie at Baa2 (rus) and the short-term rating at RUS-3.

MOSCOW. March 4 (Interfax) — Moody’s Interfax Rating Agency has confirmed its long-term rating on the national scale for Vozhrozhdenie at Baa2 (rus) and the short-term rating at RUS-3.

The rating reflects the bank’s strong market position in Moscow region, its diversified clientele, and stable liabilities. It is constrained by low profitability. Moody’s Interfax noted the reduced significance of the risk of a repeat restructuring of the bank’s biggest loan, made to auto maker Moskvich, as the share of the loan in assets and capital has dropped considerably in late 2003 and early 2004, and the bank formed 100% reserves for the loan, thus improving the bank’s creditworthiness.

The bank conducts most of its business in Moscow region, one of the fastest growing regions with high personal incomes. The bank brand is well known in the region and with 36 affiliates Vozrozhdenie can serve clients in all areas of the region, giving it a solid market position. Most of the bank’s loans were made to organizations registered in Moscow.

Assets resumed growing in the fourth quarter of last year after falling in the third quarter and were up 10% (15% for all of 2004). Deposits by individuals grew 18.6% in the fourth quarter after dropping 6% in the third quarter and topped mid—2004 levels at the start of 2005.

Vozrozhdenie was included in the deposit insurance system in December. Moody’s Interfax said this will enable the bank to improve the stability of deposits during crises.

The Baa2 (rus) long-term rating on the Moody’s Interfax Rating Agency national scale reflects adequate creditworthiness in comparison to other Russian borrowers. The rating indicates that borrowers can meet financial obligations in favorable conditions, but are vulnerable to negative changes in external conditions.

The short-term RUS-3 rating on the Moody’s Interfax Rating Agency national scale signifies a high level of creditworthiness compared to other Russian borrowers/debt.

Vozrozhdeniye Bank and Swedish bank SWEDBANK (ForeningsSparbanken AB (publ)) signed the Export Credit Facility Agreement under the Guarantee of the Swedish Export Guarantee Board
Bank Vozrozhdeniye has successfully completed the first quarter of the year 2005. The profit for the 1st quarter of the year 2005 amounted to RUR 116 ml.