OREANDA-NEWS. August 13, 2007. Moody’s Investors Services upgraded global scale ratings of Absolut Bank: long-term and short-term local and foreign currency bank deposit ratings to Baa3/Prime-3 from Ba3/Not-Prime, and the long-term foreign currency senior unsecured debt rating to Baa3 from Ba3.

Concurrently, Moody/'s Interfax Rating Agency upgraded the bank/'s long-term national scale rating to Aaa.ru from Aa3.ru. The D- bank financial strength rating has been affirmed with stable outlook.

Rating actions conclude the review for possible upgrade initiated in July 2007 following the transfer of

a 92.5% stake in Absolut Bank to Belgium/'s KBC Group, which has recently been approved by the Russian

authorities. Along with the 2.5% stake bought by KBC from IFC in May 2007, the new acquisition brings KBC/'s total stake in Absolut Bank to 95%. The remaining 5% of Absolut Bank shares are still owned by IFC and this is not expected to change in the nearest future.

The upgrade of the bank/'s deposit and debt and national scale ratings reflects the expectation that KBC Group will demonstrate and maintain a strong commitment to Absolut Bank and provide implicit support.