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Fitch Ratings affirms ratings of CREDIT BANK OF MOSCOW

20.06.2011

16 June 2011 — international rating agency Fitch Ratings affirmed ratings of CREDIT BANK OF MOSCOW as follows: Long-term Issuer Default Rating (IDR) — at ‘B+’, Short-term IDR — at ‘B’, Individual Rating — at ‘D’, Support Rating — at ‘5’ and National Long-term Rating — at ‘A- (rus)’. Outlook was affirmed as ‘Stable’.

The rating agency notes the Bank’s healthy franchise, wide track record of lending to brand-name companies from retail and wholesale trade and a strong cash collection business in Moscow that potentially allows CBM identify problems with the borrowers early on. Fitch also stresses the low level of nonperforming loans (NPLs), namely 1.5% at YE2010.

Affirmation of ratings at the same level generally reflects the "post-crisis improvement in the operating environment; sound profitability, supported by low impairment charges; and limited refinancing risk in view of accumulated liquidity reserves and currently abundant market liquidity".

It is worth mentioning that Long-term IDR of CBM was upgraded by Fitch Ratings to current ‘B+’ from ‘B’ on June 3, 2010.

CREDIT BANK OF MOSCOW is also rated by international rating agency Moody’s Investors Service as follows: financial strength rating (FSR) — ‘E+’, long-term global & local currency deposit rating — ‘B1/NP’ and long-term national scale credit rating — ‘A2.ru’.