The 'A+' rating indicates that Baltic Coast qualifies as a highly creditworthy borrower. The risk of a failure to meet obligations in time is insignificant.

We regard the Company's growing revenue and net profit, increasing return on sales and return on invested capital, higher retained earnings and equity capital, faster general capital turnover including the turnover of

The Company's sales revenues have been on a steady growth trend for the last six years increasing by more than 21% in 2013, by 9.7% year-on-year in the first quarter of 2014 alone. Also, net profit of Baltic Coast for the first quarter of 2014 increased by 8.8% year-on-year.

In the opening quarter, the Company increased its return on sales from 10.3% to 11.2%, while its

Benefiting from this successful business development, the Company has been building up retained earnings for the last six years, their total amount increasing with every quarter. In particular, Baltic Coast's retained earnings increased by 38% in 2013, by 10% in the first quarter of 2014, reaching almost RUB 812 million. The Company's retained earnings are the main source of its equity capital which, for this reason, is also firmly on the rise. 

The Company's equity capital turnover, accounts receivable / payable turnover ratios have grown recently, an evidence of its higher business efficiency. The total capital turnover ratio of Baltic Coast increased from 1.34 to 1.52 in 2013 and reached 1.53 in the first quarter of 2014. The accounts receivable turnover ratio rose from 2.36 to 3.61 in 2013, to 3.62 in the first quarter of 2014. The accounts payable turnover ratio improved from 4.21 to 12.02 in 2013 and reached 12.13 in the first quarter of 2014.

Baltic Coast's debt is wholly denominated in Russian rubles, with 95% of it arising from long-term credits and loans, a fairly comfortable debt profile, which contributes to the Company's credit rating.

At the same time, the credit status of Baltic Coast is impaired by the growing debt burden, the relatively low percentage of equity capital on the liabilities side and the ROE ratio decline.

In the first quarter of 2014, Baltic Coast's loan debt grew by 4.5% and reached RUB 2,852 million. By the end of the year, the outstanding debt is expected to increase by approximately RUB 500 million, which poses certain risks.

We also regard the low percentage of equity capital on the liabilities side as a risk factor. This problem has plagued the Company for years. Despite a minor growth from 18.7% to 19.5% in the first quarter of 2014, this percentage is still uncomfortably low.

Besides, Baltic Coast's return on equity went down from 70.1% to 32.2% in 2013 and further declined to 29.9% in the first quarter of 2014.

Baltic coast (part of the BALTIC COAST Group) was established on October 27, 2000 as a company specializing in the production and sales of fish and various kinds of fish products. The Company's core business activities currently include the breeding, processing and marketing of fish and fish products. Baltic coast's share in the domestic market of its products reaches 20% (about 25% in St. Petersburg and Leningrad region, approximately 10% in Moscow and almost 20% throughout Russia). In particular, benefiting from its own fish breeding capacities, the Company covers about 5% of Russia's total demand for chilled salmon. The Company's product portfolio reaches 450 item names. As of April 1, 2014, Baltic Coast's assets totaled RUB 4.2 billion, annual sales revenue amounted to approximately RUB 7 billion.

Official Company name: Baltic Coast.

Baltic Coast's auditor is CJSC Audit Firm CONSULT registered by order 313/235-p of the Head of St. Petersburg's Petrogradsky District Administration as of December 26, 1991, Primary State Registration Number 1027806877658. The audit firm is located at ul. Prof. Popova 27, office 12-N, 197022 St. Petersburg, Russia. Since 2003 , CJSC Audit Firm CONSULT has been a member of SRO Nonprofit Partnership Audit Chamber of Russia registered in the State Register of Self-regulatory Audit Organizations under primary registration number 10301002154.

This press release is based on the Statement of assignment of a credit rating to Baltic Coast (CJSC).

The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company'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.

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 Analysis, Consulting and Marketing Rating Agency

Ul. Gubkina 3, Moscow, Russia

www.akmrating.ru

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