The 'A' rating indicates that PAO IntechBank qualifies as a highly creditworthy borrower. The risk of a failure to meet obligations in time is low, the full or partial debt restructuring risk is minimal.

The outlook revision to negative reflects the poor N1 ratio, the low level of highly liquid assets and the weaker profitability of the Bank.

Throughout 2014, the Bank's capital adequacy ratio stayed at about 12%. The credit institution improved both its earning assets and equity capital. This year, however, the Bank has been unable to preserve the required balance of performance indicators, with the result that the CAR dropped below 11%. The gap between the Bank's capital adequacy ratio and the average percentage across the banking sector of Russia has increased to 2 p.p.

As of June 1, 2015, the Bank's capital adequacy ratio was 10.8%. This relatively low percentage reduces the Bank's ability to absorb possible operating losses and increases the risks borne by the credit institution's clients.

PAO IntechBank is actively expanding borrowings from private customers. This year, the amount of retail deposits grew by almost 11% reaching RUB 12.4 billion as of June 1, 2015. Retail deposits accounted for 44% of the Bank's liabilities.

At the same time, the share of highly liquid assets in total assets is 5.1%, which is far below the average percentage of 11.2% in the Russian banking sector. In AK&M Rating Agency's view, the low level of highly liquid assets increases liquidity risks should a stress scenario play out.

PAO IntechBank keeps its financial performance positive. As of June 1, 2015, profit after tax was RUB 6.9 million. However, the Bank's net profit saw a strong decline compared with the same period in 2014 (-90%), indicating a lower operational management efficiency at the Bank.

PAO IntechBank has been operating in the market of banking services since 1994. The Bank possesses general banking license no. 2705 as of April 10, 2015 issued by the Central Bank of the Russian Federation. The Bank is a member of the deposit insurance system, reg. no. 487 as of January 20, 2005.

Full Bank name: Public Joint Stock Company «IntechBank».

Short name: PAO «IntechBank».

This press release is based on the results of monitoring the current credit rating assigned to PAO IntechBank.

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

AK&M Rating Agency shall not be held liable 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. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

CJSC AK&M Rating Agency

Ul. Gubkina 3, Moscow, Russia

www.akmrating.ru

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