DGAP-News: MDM Bank: S&P Upgrades Russian MDM Bank To –BB—, Outlook Stable

EquityStory.RS, LLC-News: MDM Bank / Key word(s): Miscellaneous
MDM Bank: S&P Upgrades Russian MDM Bank To –BB—, Outlook Stable

12.12.2011 / 15:44

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S&P Upgrades Russian MDM Bank To –BB—, Outlook Stable

12 December 2011

International rating agency Standard&Poor–s has raised the long-term
credit rating of MDM Bank from?+ to??- with a –stable– outlook. At the
same time, Standard&Poor–s assigned the Bank a –ruAA— Russia national
scale rating.

This rating action was performed in accordance with Standard&Poor–s
revised bank criteria and reflects MDM Bank–s adequate capital and
profitability ratios, sufficient liquid assets and the declining problem
indebtedness in the Bank–s loan portfolio.

For further information, please refer to:

–We view MDM–s capital ratios as adequate. We expect them to continue to
compare well with those of other rated domestic banks in the medium term.
Satisfactory profitability is supported by a lower cost of funds,
stabilized new provisioning, and improved operating efficiency,– stated in
the rating agency–s press release.

Konstantin Rogov, the MDM Bank CFO, said of the upgrade:–The decision of
Standard&Poor–s to upgrade MDM Bank–s credit rating testifies to the high
reliability of our credit profile, our balanced and diversified assets and
liabilities structure, as well as our studious risk management.–

Sergey Timofeev, the MDM Bank CEO, added:–MDM Bank continues to follow its
conservative business management model, which is conducive to sustainable
improvement of the Bank–s credit portfolio quality. We are set for organic
growth, and we are convinced that it is this consistent and sustainable
business development that results in continuous progress, based on
partnership with clients and the professionalism of the Bank–s personnel.
The decision of Standard&Poor–s to raise MDM Bank–s credit rating
reflects the correctness of the route we have chosen.–.

MDM Bank has operated in the Russian financial market for over 20 years and
is one of the most dynamically developing financial institutions of Russia.
MDM Bank is among the country–s largest banks by equity and assets.

The shareholders of MDM Bank include major international financial
institutions such as the International Finance Corporation and the European
Bank for Reconstruction and Development. MDM Bank is a modern, universal
credit and finance institution offering a wide range of services to
corporate and individual clients.

MDM Bank today is a dynamic financial institution actively participating in
the development of Russia–s economy and financial system. It has over 200
branches operating in 117 cities and towns in throughout Russia. The Bank–s
client base comprises of around 3 million retail customers and 35,000
corporate and SME clients who are offered a wide range of financial
services. The Bank has a representative office in Beijing.

MDM Bank has one of the highest credit ratings from Standard&Poor–s,
Moody–s and Fitch among privately-owned Russian banks: Standard&Poor–s
(BB-), Fitch Ratings (BB) and Moody–s (Ba2). MDM Bank operates under
Banking License 323 of 06.08.2009 issued by the Central Bank of Russia.

Global Finance magazine named MDM Bank the best Russian bank of 2010 in
emerging markets in Central and Eastern Europe. MDM Bank has consistently
maintained a place in the Top-10 lists of Russian companies. Finance
Magazine also placed MDM Bank in its 2010 ranking of the 100 biggest
Russian companies by valuation. In 2009, The Banker magazine (of the
Financial Times group) announced MDM Bank as –The Bank of the Year in
Russia.– The Bank had previously received the same award in 2002. MDM won
the Euromoney magazine –Best Corporate and Investment Banking Management in
Central and Eastern Europe 2007– award. Standard&Poor–s awarded MDM Bank
the highest ranking in its study of –Transparency and Disclosure by Russian
banks– in 2007 and 2006. The bank was also regarded by Euromoney as –one of
the leading banks in Russia and Emerging Europe, applying the most advanced
standards of corporate governance.– Between 2003 and 2010, MDM Bank
received a number of awards from Global Finance magazine. Further
information: http://www.mdmbank.com

Investor Relations
MDM Bank
+ 7 (495) 221-30-75/76
http://www.mdmbank.com/ir/

End of Corporate News

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