25.02.2008

International rating agency Moody’s Investors Service has approved Parexbanka’s long-term global local currency deposit rating Baa3 with a stableoutlook. The Bank is the only investment grade rated private financialinstitution in the Baltic States.

In its credit opinion Moody’s discussed Parex banka’s strong marketposition, strong nationwide franchise in Latvia, growing diversification of itsproduct base and earnings, adequate capital base and good profitability, as wellas increasing diversification of its funding sources, noting that Parex bankasuccessfully retains its market positions, in spite of increasing competitionwith banks supported by international funding.

Mr. Valery Kargin, the President and Chairman of the Board of Parex banka,commented: “Notwithstanding the liquidity crises in global markets in the pastyear and an awareness of risk last seen in 1998, from the standpoint of ratingagencies Parex banka remains investment grade. Meanwhile it is clear that thepace of economic development in Latvia will slow down, though we believe thecountry will continue to be prosperous in the future. Today we do not regret atall that we were not carried away by the latest financial instruments in themortgage sector, but we decided to stick to our policy that our lending shouldnot exceed substantially our customer deposits.”

In comparison with the end of 2006, the loan portfolio of Parex bankaincreased by 31.6% and reached LVL 1,732 million, while deposits amounted toLVL 1,823 million, an increase of 24.7%.

About Parex banka:

Parex banka is one of the most steadily growing Latvian commercial banks withassets exceeding EUR 4.5 billion. The Bank offers its clients integratedservices in such areas as credit services, payment cards, leasing, assetmanagement and trading with securities. More than 2,600 people are currentlyemployed to work for subsidiaries of the bank. Parex banka has representativeoffices, branches and subsidiaries in 15 countries, including branches inBerlin, Hamburg, Stockholm, Malmo, Tallin and Narva, a subsidiary bank AP Anlageund Privatbank AG in Switzerland and Parex Bankas in Lithuania. Parex banka isthe only business partner of American Express in Latvia and Lithuania withexclusive rights to issue American Express credit cards. Parex banka is assignedthe following international ratings: Moody's Investors Service – Baa3(investment grade), Fitch Ratings – BB+, Capital Intelligence – BBB(investment grade).