The ‘B++' rating indicates that Bank ELITA LLC is qualified as a sufficiently reliable borrower (the highest sub-grade of the ‘B' grade). Risk of a delay in meeting liabilities is moderate, restructuring risk for a loan / part of a loan is insignificant.

The Bank’s rating score is essentially supported by its positive ownership structure, the high quality and upward trend in the equity capital, the growing profit and operating margin, and the successful maintenance of the high quality of its loan portfolio.

The ownership structure of Bank ELITA LLC has not changed for a long time already. The bank is a municipal financial institution accumulating the funds of its customers and placing assets in Kaluga region, thereby supporting the regional economy. The bank lends actively to small and middle-sized businesses under OJSC SME Bank’s program. At the moment, OJSC SME Bank has confirmed opening a RUB 85 million credit line.

The Bank’s equity capital is still of high quality. The share of Tier 1 capital ranges from 90 to 99%; the authorized capital of Bank ELITA LLC is RUB 164.6 million (69% of the Bank’s combined own funds, above the average level in Russia’s banking system (24-25%).

The equity capital of Bank ELITA LLC continues to increase rising by 7.5% in 2011 and by 8.5% year-to-date as of July 1, 2012.

Another positive argument for the rating score is the growing profit and profitability of the Bank. In 2011, the Bank secured the highest net profit in the period under review (2006-2011) amounting to RUB 13.9 million, exceeding the 2010 net profit result almost 13-fold. For Q1 2012, the Bank achiever a higher profit than in the same quarters in 2010-2011.

In 2011, return on equity increased to 10.8% from 3.2% in 2010; as of April 1, 2012, this percentage increased by 6.3 points to 17.1%, comparable to the average level in Russia’s banking system (18.2%).

Return on assets in 2011 was 1.4%, above last year's level (0.5%). In 2012, it further increased to 2.4% equal to the average level in Russia’s banking system (2.4%).

The rating score of Bank ELITA LLC is also supported by the high quality of its loan portfolio. Class 1 loans and class 2 loans prevail in the loan portfolio, together accounting for 87.3% of the loan receivables – that is comparable to the average level in Russia’s banking system (82-83%). As of July 1, 2012, the share of non-performing and problem loans in the loan portfolio was 5.7%, below the average level in Russia’s banking system (about 7-8%).

At the same time, the Bank’s rating score is restricted by the high credit risk concentration, the uncomfortable concentration of liabilities within one group of depositors, the high share of on-call and overnight liabilities and the low instant and current liquidity ratios.

The credit risk concentration is unpleasantly high at the bank. The maximum amount of large credit risks (N7) and total magnitude of insider-specific risk (N10.1) are above average but not exceeding the upper thresholds set by the Central Bank of the Russian Federation. As of July 1, 2012, N7 was 403.16%; N10.1 was 2.84%.

The concentration of liabilities across the groups of depositors increased compared with our previous report. As of June 1, 2012, the largest group of depositors accounted for 11.2% (RUB 187.5 million), 2 largest groups for 20.3%, 5 largest groups for 40.4% of all the liabilities.

The share of the Bank’s short-term obligations in its total liabilities is high. On-call and overnight liabilities account for just over 50% of all its liabilities, increasing the liquidity loss risks. Liabilities maturing in over 90 days account for 32% of the Bank’s obligations.

The Bank’s liquidity performance is relatively poor. Instant and current liquidity ratios at Bank ELITA LLC are considerably below the average level in Russia’s banking system.

Bank ELITA LLC has been active in the market of banking services since 1991 (registration number no. 1399 of the Bank of Russia as of March 6, 1991).

The bank’s activities are subject to a license for banking services involving funds in Russian rubles and foreign currencies as of August 7, 2006 and a license for accepting deposits denominated in Russian rubles and foreign currencies from individuals as of August 7, 2006.

The Bank participates in the deposit insurance scheme, DIS registration no. 220 as of November 25, 2004.

Bank ELITA LLC focuses on providing the whole range of retail banking services to SME businesses and municipal entities of Kaluga region.

The Bank’s auditor is Vneshgen audit LLC, certificate of membership in the SRO Audit Chamber of Russia (a non-profit partnership) no. 850 as of 12/28/2009, principal registration number 10301003572).

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This press release is based on the statement of assigning a credit rating to Bank ELITA LLC.

The credit rating, 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 and for listing bonds). 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