OREANDA-NEWS. June 26, 2007. In May 2007 some media reported on new tax and legal claims against NK Russneft and claimed this situation may affect liquidity and reputation of B.I.N.BANK, reported the press-centre of B.I.N.BANK.

In this instance the management of B.I.N.BANK once again reiterates that there are no reasonable grounds to tie Russneft and B.I.N.BANK as these two entities operate as completely independent businesses and exert no influence on each other.

In terms of business exposure Russneft could be considered as small-to-medium client of B.I.N.BANK representing US$ 25 mln. in customers’ credit risk exposure (or 1,4% of net loans to customers) and US$ 23 mln. of B.I.N.BANK deposits (or 1,5% from the total category as per financial statements caption) as of April 01, 2007.

The fact was independently confirmed by Standard & Poor’s Rating Agency which stated in a separate note that B.I.N.BANK’s direct credit and funding exposure to Russneft is limited. Standard and Poor’s further noted that the impact of the situation with Russneft on B.I.N.BANK’s liquidity has been limited, despite an additional pressure related to the exercise of the put option on its Eurobond, which has been paid successfully.

Attempting to provide additional comfort to each interested party, B.I.N.BANK supplies Standard & Poor’s and Fitch Ratings with the changes in liquid assets and customers’ accounts balance on a weekly basis. The size of customers’ accounts and liquid assets of B.I.N.BANK has remained stable and is showing positive dynamic.

On May 18, 2007, Moody’s Interfax Rating Agency has affirmed at A3.ru the long-term national scale rating of B.I.N.BANK. Moody’s Interfax noted that franchise is strengthening through a wider territorial presence, gradual penetration of the retail market and adequate capitalization. B.I.N.BANK’s rating doesn’t have downgrade potential at the moment and the increasing share in retail lending, loan concentration decrease can be the factors for the rating upgrade.

On May 31, 2007 Standard & Poor’s confirmed long term credit rating of B.I.N.BANK at B- with stable outlook. The decision is benefited by good business expansion and network development of the Bank in 2006 and limited appetite for the market risk.

The management of the B.I.N.BANK would like to once again reassure all who conduct business with the Bank that whatever decisions would come from the court regarding Russneft’s tax claims, it would not affect B.I.N.BANK’s business.