OREANDA-NEWS. September 24, 2008. Alfa-Bank announced that Standard & Poor’s (“S&P”) has assigned a BBB- (BBB minus) rating to Alfa Diversified Payment Rights Company  S. A. (“Alfa DPR”) Notes Series 2006-A, Series 2006-B and Series 2006-B on 26 August 2008 (please see attached S&P press release). On 23 May 2008, S&P affirmed the previously assigned BBB- (BBB minus) rating to the Series 2007-A and Series 2007-B notes (affirmation attached) and this rating currently remains in place at this level, reported the press-centre of Alfa-Bank.

On 24 September 2008, Moody’s Investors Service (“Moody’s”) has downgraded the same Alfa DPR Notes Series 2006-A, Series 2006-B, Series 2006-C, Series 2007-A and Series 2007-B (the “DPR Notes Series”) notes by one notch from Baa3 to a rating of Ba1, which is the same level as Alfa-Bank’s long-term global local currency deposit rating of Ba1 (please see attached Moody’s press release).

According to the press release published by Moody’s on 24 September, the initial rating of the DPR Notes Series did not take into account the fact that a future occurrence of any early amortization event may trigger a cross-default of the other international indebtedness of Alfa-Bank. According to the release Moody’s has since received independent advice from leading Counsel to the contrary. In its press release Moody’s notes that the DPR Notes Series continue to benefit from a good performance in the level of the underlying DPR flows.

S&P has also considered and analysed the above-mentioned risk as a part of their rating process and they do not view it as a risk to the structure. Accordingly it has not affected their decision to award an investment grade rating to the DPR Series Notes (please see the rating affirmation dated 23 May 2008 attached).

Alfa-Bank, together with the arrangers of the DPR Notes, has cooperated with Moody’s to seek structural solutions to mitigate the risks perceived by Moody’s, however it has not proved possible to mitigate their concern.

As Moody’s emphasizes in their press release, the Alfa-Bank DPR Notes covered by these ratings have performed well, with August 2008 monthly Debt Service Coverage Ratio (“DSCR”) at 48.0x and quarterly DSCR for 2Q 2008 at 58.9x. Attached for your convenience is the most recent August 2008 investor report relating to the DPR notes, as well as Moody’s performance overview of the Alfa DPR Programme, dated 21 May 2008.