Standard and Poors Upgrades Russias MDM Bank to B+/B

10.11.2005 00:00

Moscow, 7 November, 2005 - Standard and Poors Ratings Services raised its long and short
term counterparty credit ratings on MDM Bank to B+/B from B/C due to its sustained good
performance supported by strengthening macroeconomic conditions. The outlook is confirmed as
positive.
The agency stated that the upgrade on the Bank reflects its "lessening dependence on trading
gains and a decline in related-party lending. The Russian economic environment continues to
improve, enlarging business opportunities for Russian banks and reducing their extremely high
credit risk linked to corporate clients."
The future of MDMs rating will be associated to an increase in core profitability and a reduction of
its risk profile. The success of the banks recently revised strategy to refocus operations on
corporate and investment banking and to cut back proprietary trading, and brokerage activities, will
have a large impact on the future ratings. S&P claims that the "more realistic and targeted strategy
should improve the banks commercial standing and business sustainability."
S&Ps press-release can be found on http://www.standardandpoors.ru/

19.01.2007 14:40

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