MOODY'S ASSIGNS B3/NP/E+ RATINGS TO DELTABANK JSC (KAZAKHSTAN)

First-time ratings /REUTERS, Moscow, September 18, 2008/ - Moody's Investors Service today assigned the following global scale ratings to DeltaBank: B3 long-term and Not Prime short-term foreign and local currency deposit ratings and an E+ bank financial strength rating ("BFSR"). All of the bank's ratings have stable outlook. DeltaBank's E+ BFSR, which translates to a Baseline Credit Assessment of B3, is based on the bank's fundamental credit strength, which, in Moody's view, is constrained by its limited franchise, significant borrower and depositor concentrations, aggressive liquidity management and historically weak financial performance, but underpinned by its solid capitalisation and established office presence throughout Kazakhstan. The bank's local and foreign currency deposit ratings do not factor in any expectation of systemic support in the event of a stress situation, given DeltaBank's very low national market share and relative importance to the country's banking system. Although support from the bank's shareholders cannot be ruled out, its extent and timeliness are somewhat uncertain. Consequently the long-term deposit ratings are at the same level as the bank's B3 Baseline Credit Assessment. In Moody's view, DeltaBank's ratings could be upgraded if it were to succeed in improving its franchise, as well as materially reducing its level of borrower concentration, while maintaining reasonable capitalisation and asset quality. Conversely, a mismanagement of the bank's growth strategy that adversely affected its liquidity and asset quality profiles or any material losses arising from its loan book, which has until recently been rapidly expanding, could have negative rating implications. A decrease in capital adequacy levels deriving from the rapidly expanding balance sheet could also warrant a downgrade of the bank's ratings. Based in Almaty, Kazakhstan, DeltaBank reported total audited IFRS assets of US$166 million and shareholders' equity of US$48 million at year-end 2007. The majority stake in DeltaBank was acquired by its new private shareholders in 2007 through an injection into the bank's capital. The bank's current strategy is focused on expanding its operations in even proportions across the SME, retail and corporate segments. Moscow Semyon Isakov Analyst Financial Institutions Group Moody's Eastern Europe Telephone: +7 495 641-1881 Facsimile: +7 495 641-1897 London Reynold R. Leegerstee Managing Director Financial Institutions Group Moody's Investors Service Ltd. JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2008-09-19]