TCS Bank receives two international credit ratings

Egidaco Investments plc, the parent company of TCS Bank, is pleased to announce that on 11 May 2010, Fitch Ratings assigned to TCS Bank a Long-term Issuer Default (IDR) rating of ‘B-‘ with a stable outlook and on 12 May 2010, Moody’s assigned to TCS Bank a ‘B3’ long-term deposit rating with a stable outlook.

Among the factors that drove their decision, both ratings agencies cite (i) low operating costs due to a business model which is based on direct marketing and internet-based services; (ii) a wide net interest margin; and (iii) adequate capital cushion. Please find attached the agencies’ press releases which give more detail on the rationale behind the ratings of TCS. TCS’ business is growing at a stable pace. Despite the fact that the Bank has yet to complete its third year of operational history, the ratings we have obtained from the two agencies reflect the sustainability and profitability of the Bank’s business model. Any doubts about the viability of a ‘virtual bank’ model in Russia have now been dispelled. Obtaining credit ratings from two of the world’s leading ratings agencies is an important milestone for TCS in our efforts to broaden access to capital markets. In particular, this will help us to diversify our sources of debt financing. We are carefully monitoring domestic and international debt capital markets with a view to approaching them with the next round of debt financing in the near future.