Fitch Ratings-London/Moscow-20 February 2009: Fitch Ratings has today downgraded by two notches, to ‘CCC’, the Long-term IDRs of BTA Russia, BTA Kazan, BTA Georgia and BTA Belarus, and downgraded the Long-term IDR of Moskommertsbank (MKB) by one notch to ‘B-’ (B minus). The rating actions reflect the agency’s view that support is now less likely to be made available to these banks in case of need. At the same time, Fitch has withdrawn the ratings of BTA Russia and Fitch will no longer provide rating or analytical coverage of the bank. A full list of rating actions is provided at the end of this commentary. The downgrades of the four CIS affiliates of Kazakhstan’s BTA Bank (‘BTA’) – BTA Russia, BTA Kazan, BTA Georgia and BTA Belarus – reflect Fitch’s view that support from BTA for these banks cannot be relied upon, at least in the near-term, in light of the Kazakh authorities’ primary focus on stabilising the financial position of BTA at the parent bank level. The Rating Watch Negative (RWN) on the ratings of BTA Russia reflects Fitch’s concerns about the heightened near-term asset quality and liquidity risks that the bank currently faces. The downgrade to ‘CC’ of the Long-term rating on the bank’s USD100m 9.875% senior unsecured loan participation notes due December 2009 and the revision of the Recovery Rating on the notes to ‘RR5’ from ‘RR4’ reflect Fitch’s view of the weaker-than-average recovery prospects for bondholders in case of BTA Russia’s default. The downgrade of Kazkommertsbank’s (KKB) Russian subsidiary MKB reflects similar concerns about the readiness of the Kazakh authorities to allow KKB to provide support in case of need. MKB is rated one notch higher than BTA’s affiliates because KKB is currently in a more stable financial position than BTA and because MKB is 100%-owned by KKB. In light of these factors, and also because a default at MKB would be potentially destabilising for KKB, Fitch continues to believe that some limited support for MKB from KKB is still possible. Fitch currently considers it unlikely that BTA Russia and MKB would qualify as material subsidiaries under the cross default clauses in BTA’s and KKB’s debt issues. It is unlikely that BTA Russia will in future be consolidated as a subsidiary after BTA’s stake in BTA Russia fell to 22% in Q408. KKB estimates that MKB’s assets were equal to about 8% of KKB’s (consolidated) balance sheet at end-2008., In Fitch’s view MKB’s share of KKB’s consolidated gross revenues would be very unlikely to be higher than this, so both of these measures would be below the 10% threshold required for MKB to qualify as a material subsidiary of KKB. Rating actions are as follows: LLS BTA Bank (Russia) (BTA Russia) Long-term foreign currency IDR downgraded to ‘CCC’ from 'B'; remains on RWN; rating withdrawn Short-term foreign currency IDR downgraded to ‘C’ from 'B'; remains on RWN; rating withdrawn Individual rating: downgraded to ‘E’ from 'D/E'; RWN removed; rating withdrawn National Long-term rating: downgraded to ‘B-(B minus)(rus)’ from 'BBB-(BBB minus)(rus)'; remains on RWN; rating withdrawn Support rating: downgraded to ‘5; from '4'; RWN removed, rating withdrawn Senior unsecured debt: downgraded to ‘CC’ from 'B'; RWN removed; Recovery Rating revised to ‘RR5’ from 'RR4'; ratings withdrawn CJSC BTA Bank (Belarus) (BTA Belarus) Long-term foreign currency IDR: downgraded to ‘CCC’ from 'B'; RWN removed; Negative Outlook assigned Short-term foreign currency IDR: downgraded to ‘C’ from 'B'; RWN removed Individual rating: affirmed at 'E' Support rating: downgraded to ‘5’ from '4'; RWN removed JSC Bank BTA-Kazan (OJSC) (BTA Kazan) Long-term foreign currency IDR: downgraded to ‘CCC’ from 'B'; RWN removed; Negative Outlook assigned Short-term foreign currency IDR: downgraded to ‘C’ from 'B'; RWN removed Individual rating: downgraded to ‘E’ from 'D/E'; RWN removed National Long-term rating: downgraded to ‘B(rus)’ from 'BBB-(BBB minus)(rus)'; RWN removed; Negative Outlook assigned Support rating: downgraded to ‘5’ from '4'; RWN removed JSC BTA Bank (Georgia) (BTA Georgia) Long-term foreign currency IDR: downgraded to ‘CCC’ from 'B'; RWN removed; Negative Outlook assigned Short-term foreign currency IDR: downgraded to ‘C’ from ‘B'; RWN removed Individual rating: affirmed at 'E' Support rating: downgraded to ‘5’ from '4'; RWN removed CB Moskommertsbank Long-term foreign currency IDR: downgraded to ‘B-’ (B minus) from ‘B’; Outlook remains Negative Short-term foreign currency IDR: affirmed at 'B' Individual rating: downgraded to 'E' from ‘D/E’ Support rating: downgraded to ‘5’ from ‘4’ National Long-term rating: downgraded to ‘BB- (BB minus) (rus)’ from ‘BBB- (BBB minus) (rus)’, Outlook remains Negative