The negative rating action and the outlook revision reflect the soaring risk of the rated Bank losing a substantial part of assets placed with credit institutions which forfeited their licenses subject to orders of the Bank of Russia as of July 24, 2015. Adequate provisions for such assets may absorb the whole remaining capital of PJSC Sotsinvestbank.

Besides, the suspension of services to private clients at the of the credit institution's head office and all regional departments on July 27 and 28, 2015 is putting additional pressure on the rating. The suspension announcement may trigger panic among the bank depositors whose possible requirements for the early repayment of deposits the bank may be unable to satisfy.

AK&M Rating Agency assigned a credit rating to OJSC Sotsinvestbank for the first time on June 12, 2012. The last rating action in relation to the Bank was taken on July 9, 2015. All rating action announcements are available on the akmrating.ru website.

For estimation purposes, we completely rely on the reliability of information provided by the Bank. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

The 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 a recommendation to purchase or sell securities, or to lend funds.

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.

CJSC 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.

AK&M Rating Agency

Ul. Gubkina 3, Moscow, Russia

www.akmrating.ru

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