Moody’s Investors Service

International scale

Russian National scale

^* — date of initial rating assignment
^** — date of rating confirmation

¹  On 12 July 2005, Moody's Interfax Rating Agency introduced a new national scale for Russia. According to this scale, the Bank was assigned A1.ru rating (according to the previous scale, the Bank had been assigned A1 (rus) long-term rating and RUS-1 short-term rating).

Web-site of the agency: moodys.com

16 December 2011

Moody`s Investors Services Affirms Credit Ratings Assigned to Bank Petrocommerce

On 16 December 2011, Moody’s Investors Services affirmed the following credit ratings of Bank Petrocommerce:

• international scale rating: Ва3/NP (long-term/short-term credit rating in foreign currency);
• national scale rating: Аа3.ru;
• financial strength rating: D-;
• outlook: negative.

According to Moody’s Investors Services, the Bank’s ratings are underpinned by the following key factors:

• robust capital adequacy ratio;
• solid liquidity position;
• strong corporate banking expertise, good basis and stable customer base for retail business development;
• business diversification across multiple regions;
• strategic partnership and status of the main settlement bank of LUKOIL in the ruble area.

In the medium term a rating upgrade will depend on the efficiency of the Bank’s development in the segments capable of generating high margin (retail, factoring financing, SME lending) in accordance with the adopted strategy. However, it should be noted that the Bank’s proactive stance on the above areas has already had a positive effect — growth and diversification of the customer base, which resulted in an improved view of the Bank’s business position.

October 24, 2003

Moody's Assigns B1 Rating to Loan Participation Notes Issued by Standard Bank London Holdings PLC on a Non-Recourse Basis for the Sole Purpose of Financing a Loan to Bank Petrocommerce (Russia)

Moody’s Investors Service has assigned a rating of B1 to Loan Participation Notes issued by, but without recourse to, Standard Bank London Holdings PLC for the sole purpose of financing a loan by Standard Bank London Limited to OJSC Bank Petrocommerce. The financial performance of the notes relies solely on the credit and financial standing of Bank Petrocommerce. The outlook for the ratings is stable.

The rating has been placed at the same level as Petrocommerce’s B1 long term foreign currency deposit rating, which reflects Petrocommerce’s important role in Russia’s banking system as one of the top twenty banks in the country with a significant market presence. The rating is additionally supported by the bank’s improving financial performance in the past two years, explains Moody’s.

Nevertheless, the rating remains constrained by Petrocommerce’s close relationship with its parent, Lukoil — the largest oil company in Russia and the bank’s majority owner, since Petrocommerce still has a high level of business with related parties. Also the lack of a long financial history, a low level of provisions and asset quality that needs to be improved weigh on the rating. Although rapidly growing, Petrocommerce is still relatively small in absolute terms and as such is strongly exposed to any swings in general business conditions in Russia.

Petrocommerce reported total US GAAP-consolidated assets of US$1.4 billion at 30 June 2003.

July 9, 2003

Moody's Assigns to Bank Petrocommerce (Russia) E+/B1/NP First Time Ratings

Moody’s Investors Service has assigned to Russia’s Bank Petrocommerce (Petrocommerce) an E+ Financial Strength Rating (FSR), and ratings of B1/NP for long- and short-term foreign currency deposits. All ratings carry stable outlooks.

Moody’s said that despite its size and importance to Lukoil, the largest oil company in Russia and the majority owner of the bank, Petrocommerce is unlikely to receive support from its parent in case of distress. This view is supported by the current business policy of Lukoil which calls for the streamlining of its operations and the sale of non core assets. This policy may in the longer run also impact the bank if Lukoil finds the sale of its financial subsidiary strategically viable. Hence, the B1 long-term foreign currency deposit rating assigned to Petrocommerce does not incorporate the possibility of outside support should it prove necessary.

The FSR of E+ takes into account the bank’s improving financial performance in the last two years. Moody’s believes that the bank’s ratings are also sustained by gradually improving economic conditions in the country and continuing high international commodity prices, particularly of oil.

At the same time the FSR is constrained by the bank’s close relationship with its parent and consequently still high level of business with related parties. Also the asset quality and the level of provisioning require significant improvements. Another element weighing on the rating is a short financial track record. Moody’s added that the FSR of Petrocommerce may come under pressure due to the bank’s potentially volatile operating environment.

Petrocommerce is headquartered in Moscow, Russia and reported total IAS consolidated assets of US$1.1 billion at 31 December 2002.