Actuality March 13, 2008

   Standard & Poor's rating agency changed the ratings' forecast for two Russian public banks from "stable" to "positive" ones – Bank for Development and Foreign Economic Affairs (Vnesheconombank) and Russian Bank for Development (RBD). At the same time the ratings were confirmed on the former levels as it is said in the agency press-release posted on the Standard & Poor's website.

   It is first of all the positive news for the stocks market. RTS index went more than 2,2% up. S&P forecast confirmed the macroeconomic stability in Russia. But the agency can "win back" its forecast if the Russian Federati on government does not follow up

on the promises.

As experts mark, the Russian stock market has reacted to the Standard & Poor's report by the positive growth. In spite of the next negative news' portion that came from the USA.

On March, 12 by 18:00 Moscow time the RTS index has added 2,27% at once and attained the 2058,39 points mark. The growth leaders became VTB – plus 6,99% and the Savings Bank – plus 5,31%.

   The forecast change followed after the analogical step was undertaken by Russia sovereign rating.

It means that the country rating can be raised in

the nearest time. Standard & Poor's grounded the decision by the budgetary reserves growth in Russia.

   "The forecast revision

reflects our expectations for the further budgetary and external reserves' growth of the country which are already and currently substantial", marked Standard & Poor's credit analyst Frank Gill, whose words are cited in the S&P report. As of March, 1 Russia international reserves totaled $490,7 bln.

   In Standard & Poor's explained that two banks' forecast was raised in terms of their relation to the investment projects' financing, and also enterprises of small

and middle business. Moreover, the capitalization provided by the government underlines these lending institutions' role in the state tasks' solution.

   The rating agency underlines that the forecast revision for the Russian

rating does not mean the automatic rating revision for all public banks. For example, on March, 11 it was reported that the forecast for VTB Bank and its main subsidiaries remained at the former level.

The last time the sovereign rat ing of Russia was raised in September, 2006, since the government paid the debts the Paris club off in advance.

   As Standard & Poor's considers the main risk for the Russian economy in the short-term perspective is the high dependence of the national banking system on the foreign securitization sources.

And that acquires the special significance in the light of the current problems at the world lending markets. In terms of this Standard & Poor's experts forecast the state role increase in granting the additional liquidity to the banking system.

    Investors will favorably accept the fact of rating increase.

The change of the country forecasts and ratings affects the sovereign obligations the most appreciably. Positive influence will experience the companies, which will refund the substantial sums of external debt this year.

The forecast increase of the long-term country lending rating will positively affect the investment attraction of the Russian stock market. Especially, when agencies revise the forecasts and ratings of the largest world corporations towards lowering.

Many international investment funds estimate it as the most attractive for investments.

   Meantime, the existing world market state of affairs compels the market players to behave more correct, trying to avoid risks. The USA Federal Reserve System decision for the rate is also the deterrent. In the nearest time the determinant factor for the Russian stock market stays the world trading floors' dynamics. The temporal, but painful market drops look more than credible in the nearest time.

   S&P lending analyst Frank Gill warns that the long-term forecast can be again revised for "stable" one, if the reserves' accumulation policy to the special budgetary funds or the planned changes of political structures will not be realized.

As registered in the Standard & Poor's report, any unexpected movement to the fiscal deficits area can also result in the revision of "positive" forecast for the long-term ratings.