Moody’s improved rating outlook on the Bank

On October 12, 2010, Moody’s Investors Service has changed the outlook on the D- bank financial strength rating (“BFSR”) and Ba3 long-term global foreign currency deposit rating of Bank St. Petersburg (BSPB) to stable from negative. The outlook on BSPB’s senior unsecured debt rating of Ba3 and the bank’s subordinated debt rating of B1 was also changed to stable from negative.

“The rating action reflects recently stabilised asset quality and gradual relieving of the loan loss provisioning burden that has been materially eroding BSPB’s profits since late 2008,” says Semyon Isakov, a Moody’s Assistant Vice-President -- Analyst and lead analyst for the bank. “BSPB’s ability to attract additional capital amid the worst of the market turbulence not only enabled the bank to bolster its capital position but also to grow its business which has positively affected the bank’s efficiency and recurring earning power and helped BSPB to absorb mounting credit losses,” adds Mr. Isakov.