The 'A' rating indicates that FDSA qualifies as a guarantee institution with a high degree of financial stability and a good level of SME assistance in the region. The full or partial default risk is low.

The guarantee institution's rating is supported by the high guarantee capital multiple, the good structure of loans for which the rated fund stands surety, and the robust guarantee coverage.

As of the end of 2014, the guarantee institution's surety portfolio (total amount of the surety commitments undertaken) increased by 11.4% (based on the amount of liabilities to credit institutions initially assumed by the Fund). The guarantee institution's capital multiple as of the same date was 137.7% increasing by 24.4 p.p. in 2014, indicating the Fund's high efficiency in providing SME businesses with borrowing opportunities at Russian banks.

The sureties provided by FDSA over the period under review are well diversified in terms of contract sizes and validity: more than 43% of the guarantee institution's off-balance sheet liabilities mature in 1 to 2 years, the average amount of surety was RUB 6.65 million. A substantial part of the Fund's clients (46.8%) are engaged in the manufacturing industry (which is typical for the region) as well as in the wholesale and retail trade (42.1%).

The guarantee institution's equity capital reaching RUB 439 million as of January 1, 2015 is deposited with 6 Russian banks. All the credit institutions acting as the Fund's counterparties are among the first 40 Russian banks in terms of asset size. The Fund's deposits with them vary from RUB 6 million to RUB 100 million. None of the credit institutions accounts for more than 23% of the total deposits at the start of the year, which is in line with the regulatory requirement (no more than 34% for guarantee institutions with the amount of capital exceeding RUB 150 million).

The Fund's rating is constrained by the lower amount of sureties provided and more frequent indemnity payments under surety agreements.

The total amount of sureties provided in 2014 decreased dramatically (-44.2% year-on-year). The amount of loans provided by the credit institutions under the surety agreements dropped by 40.3%. The reduction results from the Fund's policy to lower its liabilities to counterparties in case the borrowers default on repayment.

As of December 31, 2014, FDSA discharged 8 payment obligations to partner banks for a total amount of RUB 25.3 million including 3 payments in the amount of RUB 5.1 million paid in 2014. Despite its effort to recover the funds through applicable recourse procedures, the Fund had only received RUB 247 thousand by the end of January 2015 as little time has passed since the Fund was entitled to receivables and the court ruled to recover the debt. The Fund's loss ratio was 1.9% increasing by 0.14 p.p. in 2014.

The Fund of development of small and average business of Vladimir region (FDSA) was registered in December 2012. Its sole founder is the Department of Business Development, Trade and Services, a structural unit of the regional government.

Over its existence (including the activity of state autonomous institution 'SME Development and Guarantee Fund'), the guarantee institution has concluded more than 230 surety agreements exceeding RUB 1.3 billion, raising 2 rubles in SME-targeted external investments per each ruble of public investment. As of January 1, 2015, the guarantee institution's surety portfolio totaled RUB 605 million, the amount of funds raised reaching RUB 1 billion.

This press release is based on the Statement of assignment of a credit rating to the Fund of development of small and average business of Vladimir region.

The rating, along with any information and conclusions provided in this press release, only conveys our creditworthiness opinion and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

CJSC 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.

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).

CJSC AK&M Rating Agency

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Moscow, Russia

www.akmrating.ru

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