The 'C++' indicates that PAO IntechBank qualifies as a borrower with a low degree of creditworthiness. The full or partial debt restructuring risk is relatively high. The rating assignment was based on the Credit Rating Methodology for Banks and their Debt Instruments rev. February 25, 2016.

Headquartered in Kazan, PAO IntechBank manages a regional network comprising 4 branches in Moscow, St. Petersburg, Naberezhnye Chelny and Nizhnekamsk, 16 satellite offices and 2 stand-alone cash desks. The Bank is a universal credit institution providing the whole range of banking products and services involving Russian rubles and foreign currencies to legal entities and private customers.

PAO IntechBank is a large Russian credit institution in terms of the amount of business. As of December 1, 2016, the Bank was in the 100-200 range of the Russian banks in terms of assets and equity capital ranking 117th and 135th, respectively.

The rating downgrade is motivated by the Bank's disconnection from the Bank Electronic Express Payments system (BESP) by the Central Bank of Russia the Russian Federation and the impossibility to effect express payments. The rating downgrade and the lower outlook also reflect suspension by the Bank of settlement and cash services to clients.

The Bank's key performance indicators weakened slightly. In November 2016, the Bank's equity capital decreased by 2.4%, the percentage of overdue loans increased by 1.6%, while the level of overdue loans across the loan portfolio grew from 1.21% to 1.24%.

Full Bank name: Public Joint Stock Company «IntechBank».

Short name: PAO «IntechBank».

PAO IntechBank has been operating in the market of banking services since 1994. The Bank possesses general banking license no. 2705 as of April 10, 2015 issued by the Central Bank of the Russian Federation. The Bank is a member of the deposit insurance system, reg. no. 487 as of January 20, 2005.

AK&M Rating Agency assigned a credit rating to PAO IntechBank for the first time on June 17, 2010. The last rating action in relation to the Bank was taken on September 21, 2016. All rating action announcements are available on the akmrating.ru website.

The rating is valid until September 2016. AK&M Rating Agency may revise the rating and/or the outlook during this period if circumstances fundamentally influencing the Bank's creditworthiness are revealed.

For estimation purposes, we completely rely on the reliability of information provided by the Company. 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 PAO IntechBank.

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.

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.

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