PSB to terminate its S&P services

PSB has made a decision to terminate services of the international credit rating agency Standard and Poor’s (S&P). On 21 April 2010 S&P revised PSB rating outlook from Stable to Positive, while credit and certificate of deposit ratings credit remains unchanged on the level “B”. PSB is the first Russian bank to have its S&P rating outlook revised to Positive in 2010.

PSB management believes that holding ratings from all three international agencies is not a prerequisite for successful operations of a bank. PSB is one of the biggest privately owned banks in Russia which debt securities are traded both on the international and domestic capital markets. As a result of, apart from the rating agencies, most leading foreign and Russian research analysts cover the Bank's operations and financial results and publish regular reports. Independent analysis of PSB operations is therefore fully available to our investors, depositors and clients.

The decision to terminate S&P services had already been under discussion prior to the crisis of 2008. However, to reassure our investors, PSB decided not to press ahead with the decision back then in these difficult circumstances. The decision process was re-launched with stabilization of the international markets and a boost to PSB corporate governance with the arrival of a new minority shareholder, the European Bank for Reconstruction and Development. The decision to terminate S&P services has been made by PSB management team and approved by PSB Audit Committee.

PSB currently also holds ratings from two more international rating agencies: Fitch Ratings (B+/B/ RW Developing) and Moody’s Investors Service (Ba2/Not Prime/Negative).

About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB 471.2 bn, and total capital of RUB 51.8 bn under IFRS as of 1 January 2010. Holding company Promsvyaz Capital B. V. owns 72.93% of the Bank, Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG, has a 15.32% stake, and the European Bank for Reconstruction and Development owns the remaining 11.75%. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service and“B+” from Fitch Ratings. As at 1 April 2010, PSB had a network of about 240 points of sale in Russia, including 48 branches, a foreign branch in Cyprus, and representative offices in China, India and Ukraine. Banking Group Promsvyazbank includes OJSC Promsvyazbank (head organization), OJSC Volgoprombank, OJSC Yarsotsbank and OJSC Nizhny Novgorod Bank. http://eng.psbank.ru/