Credit-Rating affirmed PJSC Russian Standard Bank long-term ratings

16.09.2011

Credit-Rating affirmed the long-term credit rating assigned to PJSC Russian Standard Bank (Kiev, Ukraine) at uaBBB+ (National Ukrainian Rating Scale). The outlook for the rating has been revised to stable. The Agency also affirmed bank deposit rating assigned to PJSC Russian Standard Bank at the level of “4” (high strength). To affirm the ratings, Credit-Rating considered financial statements of PJSC Svedbank Ukraine for 2009, 2010 and 1 half 2011, as well as other inside information submitted by the Bank within the rating procedure.

An obligor or a debt liability withuaBBBcredit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Stableoutlook indicates lack of any anticipated reasons to change the rating in the course of the year.

The bank deposit rating at the level of “4” indicates that the bank is sufficiently reliable, yet being more vulnerable to impact of adverse commercial, financial and economic factors than banks bearing rating '5'. The probability of bank's failure to return deposits is low.

Factors maintaining the credit rating:

• support from the key shareholder (own funds and funds drawn from the shareholder totally equal
• 55% of Bank’s liabilities as of 1 July 2011);
• credit portfolio diversification by key borrowers;
• high liquidity and capitalization indices;
• developed sales network providing stability of cash flow from the main activity.

Factors constraining the credit rating:

• the Bank acts solely in the high risk consumer lending segment;
• low performance efficiency indicators;
• low business activities and persisting hardships in certain economy sectors, which limit effective

demand for lending and weighs on the bank’s figures.

Issue of registered coupon bonds by PJSC Russian Standard Bank (series B) in the amount of UAH 100 mln. possesses the long-term credit ratingat the lvel of uaА+(HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities). The rating level is determined by the guarantee from relative parent bank (JSC Russian Standard Bank (Russia)).

Information on all credit ratings assigned in accordance with the National Ukrainian Rating Scale may be found in THOMSON REUTERS and BLOOMBERG information systems.

For more information, please contact:
Mr. Alexey Kapustinskiy
+380 44 490 2550
AKapustinskiy@credit-rating.ua