FITCH REVISES VTB BANK (ARMENIA)’S OUTLOOK TO POSITIVE

The Asian Banker , Singapore
May 14 2007

Fitch Ratings has revised the Outlook on VTB Bank (Armenia)’s ("VTBA")
Foreign and Local Currency Issuer Default ratings ("IDR") to Positive
from Stable. Its ratings are affirmed at Foreign and Local Currency
IDR ‘BB’, Short-term Foreign and Local Currency ‘B’, Individual ‘D/E’
and Support ‘3’.

The revised Outlook reflects the recent change in the Outlooks of
Armenia’s Foreign and Local Currency IDRs to Positive from Stable.

The IDRs were affirmed at ‘BB-‘ (BB minus). Were the sovereign
ratings to be upgraded, this would be likely to signal a reduction
in Armenian country risks, in particular transfer and convertibility
risks, which at present constrain VTBA’s ratings.

VTBA is one of the largest banks in Armenia with about 10% of the
banking system’s loans and retail deposits at end-2006. VTBA (formerly
known as Armsberbank) has a long history of operations in Armenia
and traces its origin to a branch of Sberbank of the former USSR,
established in 1923. The bank services both corporate and retail
clients, supported by an extensive branch network consisting of 100
branches located all over the country. The bank is majority-controlled
by Russia’s VTB (IDR ‘BBB+’).

Re-disseminated by The Asian Banker

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