OREANDA-NEWS. On 19 February 2008 was announced, that Moody’s Investors Service upgraded the long- and short-term local and foreign currency deposit ratings of JSC Rosbank (“Rosbank”) to Baa3/Prime-3 (positive outlook) from Ba2/Not Prime (stable outlook). Moody’s also upgraded the foreign currency debt ratings assigned to the debt issuance programme of Rosbank Finance S.A. to Baa3/Prime-3 (positive outlook) from Ba2/Not Prime (stable outlook). Rosbank’s Bank Financial Strength Rating (“BFSR”) of D was affirmed with stable outlook. Concurrently, Moody’s Interfax Rating Agency upgraded Rosbank’s long-term national scale rating to Aaa.ru from Aa2.ru.

Moody’s noted that the upgrades were prompted by the recent announcement that Societe Generale -- a leading Western European banking group (rated Aa2/Prime-1, stable; B-, negative), which previously owned a stake of 20% minus 1 share in Rosbank – has exercised a call option on 30% plus 2 shares of Rosbank, thus accumulating a controlling stake in the Russian institution. Following the completion of the transaction, Societe Generale and Interros will launch a mandatory offer to minority shareholders, which will result in Societe Generale’s owning up to 57.8% of Rosbank by the end of H1 2008.

“Moody’s regards the acquisition by Societe Generale of a controlling stake in Rosbank as demonstrating the high level of commitment and support to Rosbank from its new parent, which may, in the longer term, result in Rosbank being a better strategic fit to Societe Generale’s business in Russia and enjoying easier access to funding from its parent,” said Olga Ulyanova, Assistant Vice-President/Analyst and lead analyst for Rosbank at Moody’s.

“The positive outlook on Rosbank’s deposit ratings reflects Moody’s expectation that the bank will start to play a more important role in Societe Generale group’s business going forward. In the event that Societe Generale increases its stake in Rosbank within the next six to twelve months, demonstrates a deeper involvement in parental oversight of Rosbank’s activities and secures stronger market perception with regard to the links between Rosbank and Societe Generale group, such as through respective changes in Rosbank’s brand name and logo, Moody’s would likely be prompted to take further positive action on Rosbank’s deposit ratings,” Ms Ulyanova added.

Meanwhile, Moody’s understands that Rosbank will continue to follow its strategy of a universal financial institution providing a wide range of conventional services to both private and corporate clients.

The following ratings were upgraded:
Long-term and short-term ratings of the US$750 million Guaranteed Debt Issuance Programme of Rosbank Finance S.A. (Luxembourg) unconditionally and irrevocably guaranteed by Rosbank – to Baa3/Prime-3 (positive outlook) from Ba2/Not Prime
Long-term and short-term local and foreign currency deposit ratings of Rosbank – to Baa3/Prime-3 (positive outlook) from Ba2/Not Prime
National Scale Rating – to Aaa.ru (National Scale Ratings carry no specific outlook) from Aa2.ru

The following ratings were affirmed:
D Bank Financial Strength Rating (stable outlook)

Headquartered in Moscow, Russia, Rosbank reported total IFRS consolidated assets of US$11.2 billion, and total capital funds of US$1.184 billion as of 31 December 2006.

Based in La Defense, France, Societe Generale reported EUR1,125 billion of consolidated total assets and shareholders’ equity of EUR34.4 billon as of 30 June 2007.