OREANDA-NEWS. JSC Bank TuranAlem hereby would like to provide our fixed-income investors with a brief update on recent developments, including year-to-date financial performance, changes in credit ratings and funding strategy, reported the press-centre of  JSC "Bank TuranAlem".

For the period from December 31, 2006 to May 1, 2007, the Bank’s assets grew to approximately US$20,4 bln from US$16,3 bln, reflecting a 25% increase. Total equity grew from US$1,53 bln to approximately US$1,97 bln, reflecting a 28% increase. Net income increased by approximately 39,7%, from US$136,4 mln to about US$190,0 mln.

The Bank plans to increase its total assets and total capital to US$26 bln and US$3,8 bln, respectively, by the end of 2007.

On June 22, 2007, following the implementation of the refined JDA methodology on external support, Moody’s downgraded the debt ratings of Bank TuranAlem, concluding the possible downgrade that initiated on May 4, 2007.

More specifically, the FC senior unsecured and subordinated debt ratings were downgraded from Baa1 to Baa3 and from Baa2 to Ba1, respectively. Bank TuranAlem’s junior subordinated debt rating was downgraded from Baa3 to Ba2. The D- bank financial strength rating (BFSR), which is an indicator of the Bank’s stand alone credit quality, was unchanged, reflecting solid capitalization, sound profitability and strong market position of the Bank. The long term foreign currency deposit rating of Ba1 also remained unchanged. All ratings have Stable outlook.

Moody’s recognizes that Bank TuranAlem’s credit ratings continue to reflect a very high degree of systemic importance.

In the first half of the year, the Bank raised US$1 billion through its very successful dual-tranche USD-denominated offering in January, 2007. In the loan markets, Bank TuranAlem raised an equivalent of $500 million in form of a 3-year Yen-denominated syndicated loan year-to-date. The Bank is fully on track with respect to its funding program for 2007.

Bank TuranAlem enjoys significant flexibility with respect to fulfilling its remaining external funding target (i.e. US$1,5 billion) and we reiterate that the cost of borrowing, general market conditions, and the performance of our existing debt securities will continue to be the key criteria for Bank TuranAlem when assessing possible windows of opportunity for future issuance.

Bank TuranAlem is currently actively considering diversifying its funding sources through the securitization market. Such issuance will be considered complementary to the overall funding requirement for the year.

To discuss the recent developments in additional detail and to further facilitate efficient information dissemination to our investors, please be informed that the Bank also plans announcing an investor conference call in the near future.