The rating upgrade reflects structural improvements in the credit institution's funding base, which made a positive impact on the breakdown of liabilities in terms of maturity. The share of liabilities maturing in more than one year increased more than 1.5 times, now exceeding 60%.  

We also appreciate the stabilization of the Bank's operations. The settlement of all previously failed payments and the ability to timely process current payments of clients restores the credit institution's business reputation. As a result, the turnovers of client accounts are on an upward trend growing three times this year.

The comfortable balance of asset-side and liability-side transactions strengthens the Bank's financial performance. In January-April 2016, the bank's net profit was positive, considerably exceeding the result achieved in the same period of 2015.

The above-mentioned improvements in the activity of PJSC BALTINVESTBANK resulted from the current turnaround efforts. In May 2016, the credit institution passed under full control of Absolut Bank engaged as the turnaround manager.

AK&M Rating Agency assigned a credit rating to PJSC BALTINVESTBANK for the first time on December 2, 2008. The last rating action in relation to the Bank was taken on February 10, 2016. 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.

This press release is based on the monitoring results of the current credit rating assigned to PJSC BALTINVESTBANK and the Credit Rating Methodology for Banks and their Debt Instruments rev. November 27, 2015.

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.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.

AK&M Rating Agency

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www.akmrating.ru

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