The negative rating action was motivated by the significantly higher debt arrears (2.2 times), shrinking deposits of legal entities, a substantial increase in the Bank's debt on bills and bonds (by 50%), and negative publicity.

The soaring debt arrears (from RUB 62,371 thousand on May 1, 2014 to RUB 137,006 thousand on August 1, 2014) is striking the eye. In relative terms, the debt arrears increased from 5.6% to 10.6%.

At the same time, the amount of funds raised by the Bank is firmly on a downward trend. In July 2014 alone, deposits of legal entities decreased by 6.9%.

While the Bank's borrowings are looking down, its debt on bills and bonds has seen a substantial growth for the last three months (by 50%, from RUB 67,198 thousand to RUB 97,424 thousand).

The negative publicity wave arising from the current investigative action against the head of Intercapital-Bank's St. Petersburg department is putting heavy pressure upon the rating and rating outlook.

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 Analysis, Consulting and Marketing 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.