Fitch Ratings downgraded the ratings of MDM Bank and Alfa Bank, and revised its outlook on a number of other Russian banks

Fitch Ratings downgraded the long-term issuer default ratings (IDR) Alfa-Bank and MDM Bank, Russia, from the level of "BB" to "BB-" (BB minus). At the same time the agency has changed from "stable" to "Negative" forecast on long-term IDR of the following financial institutions: MDM Bank, Alfa Bank, NOMOS -BANK ("B +"), PSB ("B +"), Bank URALSIB ("B +"), Leasing Group URALSIB ("B +") and Bank ZENIT ("B +"). Fitch affirmed the long-term issuer default rating of Russian Standard Bank (RSB ") at the level of" BB-"(BB minus) with Negative Outlook and Long-term IDR URSA Bank" B + "remains under observation in the list Rating Watch" positive. "The negative rating actions on IDRs the banks reflect the observed and the probable future deterioration in asset quality due to difficult operating environment in Russia, their generally moderate in the present ability to absorb losses and uncertainty (varying degrees) in the plans for recapitalization in the event of a more pessimistic scenario. downgrades of MDM Bank and Alfa Bank reflects the already significant impairment in these banks, the risks associated with substantial foreign currency lending, and general deterioration in the operating environment. At the same time, MDM Bank and Alfa Bank continued to have ratings one notch higher than most other major Russian banks in the private property at the expense of a slightly higher capacity to absorb the first losses (based on reserves and the indicators of capital for regulatory bank reporting in March), and also due to slightly higher confidence in the ability of shareholders Fitch to make new contributions to capital, if necessary, and because of more positive Fitch views the quality of management of these banks, in particular risk management functions. Status Rating Watch "positive" rating on URSA Bank reflects the planned fusion with MDM Bank in 3 square meters. 2009 and the current Fitch's expectation that the combined bank will have a rating of "BB-" (BB minus).