The ‘A’ rating indicates that OJSC Sotsinvestbank is qualified as a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.

One of the arguments for the rating score is the improving KPIs of OJSC Sotsinvestbank. In 2011, the Bank’s assets increased by 46.9% year-on-year (mainly driven by the growing net lending receivables) against 23.1% on average in Russia’s banking system. As of April 1, 2012, the Bank’s assets increased by 42.1% year-on-year reaching almost RUB 11 billion from RUB 7.7 billion as of April 1, 2011

In 2011, the Bank’s own funds increased by 20.5% driven by a subordinated loan (RUB 200 million) and the growing retained earnings. For reference, the average growth rate in Russia’s banking system for 2011 was 10.8%. As of April 1, 2012, the Bank’s equity capital increased 15.0% year-to-date.

In 2011, net profit of OJSC Sotsinvestbank was RUB 24.8 million increasing by 6% year-on-year. Net profit for Q1 2012 was RUB 13.6 million increasing by 21.3% year-on-year.

In 2011, amount of deposits increased by 49.5% against 20.9% on average in Russia’s banking system. As of April 1, 2012, it has not change essentially since the start of the year yet exceeded the amount of deposits in Q1 2011 by 25.5%.

Loan assets of OJSC Sotsinvestbank are of acceptable quality. The share of non-performing and problem loans in the loan portfolio as of April 1, 2012 is 1.4%, below the average level in Russia’s banking system (about 7-8%). This indicates that the Bank’s credit policy is well-balanced and the credit risk is low. Class 1 loans and class 2 loans account for 81.4% of the Bank’s loan portfolio, roughly matching the average value in the banking system of the Russian Federation (82-83%).

As of April 1, 2012, arrears on the loans granted by OJSC Sotsinvestbank and other funds placed by it is 2.2% of the loan receivables, which is somewhat below the average value in Russia’s banking system (4.2%).

Another positive signal for the rating score is that OJSC Sotsinvestbank has a well-developed branch network in the Republic of Bashkortostan. Apart from the HQ, the network consists of 1 branch, 38 additional outlets, 48 operational offices and 19 stand-alone cash desks. This network enables OJSC Sotsinvestbank to aggressively expand in the market increasing its customer base in the region. It will be noted that the number of the Bank’s branch offices is growing vigorously. Since the start of 2012, the Bank has opened 7 points of services in the region. As a result, the number of outlets of OJSC Sotsinvestbank has increased to 107, the Bank intends to reach 130 outlets before year end.

The rating score of the Bank is under pressure of the low capital quality. Shares of Tier 1 capital and Tier 2 capital in the Bank’s equity capital are equal.

Another negative signal is that the credit risk concentration is above the average level in Russia’s banking sector. The maximum amount of large credit risks (N7) at OJSC Sotsinvestbank is above the average in Russia’s banking sector. However, it is still 1.6 times below the maximum percentage of 800% set by the Central Bank of the Russian Federation.

In 2011 Maximum amount of loans, guarantees and surety bonds to the bank’s members (N9.1) was above the average level in Russia’s banking system, although three times below the upper threshold set by the Central Bank of the Russian Federation (50%).

OJSC Sotsinvestbank’s rating score is also restricted by the low instant liquidity level (N2) all over the period under review (3 years). However, since the start of 2012 it has improved from 37.30% to 62.54% as of April 1, 2012 implying further growth of the instant liquidity level.

OJSC Sotsinvestbank has been active in the market of banking services since 1990 being among the 500 largest banks of Russia. OJSC Sotsinvestbank possesses general banking license no. 1132 granted to it by the Central Bank of the Russian Federation on December 15, 1998.

The Bank participates in the compulsory deposit insurance system (DIS scheme registration no. 50 as of October 7, 2004).

OJSC Sotsinvestbank provides the standard range of banking products and services involving Russian rubles and foreign currencies, comprehensive services to corporate and private customers being its core activity.

The Bank’s auditor is CJSC Yekaterinburg Audit Center, audit license of the Ministry of Finance of the Russian Federation no. E000455 dated June 25, 2002, expiring on June 25, 2012. Yekaterinburg Audit Center is a member of the self-regulatory organization Audit Chamber of Russia (a non-profit partnership), registration certificate no. 6068.

This press release is based on the statement of assigning a credit rating to OJSC Sotsinvestbank.

The rating score, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities to the Bank.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.

AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Provision 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide business banking services to project and engineering entities implementing investment projects), the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base, for listing bonds and for providing access to the MICEX+ trading mode). Pursuant to an order of Russia's Government AK&M Ratings count for approving the capitalization increase procedure for banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

CJSC Analysis, Consulting and Marketing Rating Agency

ul. Gubkina 3

Moscow, Russia

www.akmrating.ru

Press release by: Y.B. Kuznetsova

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18