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Moody's upgrades Rosbank to Baa3/P-3/Aaa.ru, positive outlook, FSR affirmed at D

February 19, 2008 | Cbonds

Moscow, February 18, 2008 -- Moody's Investors Service today 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.
Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global
rating agency.

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
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 increasing its 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 rating was 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.

Company: ROSBANK

Full company nameROSBANK PJSC
Country of riskRussia
Country of registrationRussia
IndustryBanks

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