NOVA KREDITNA BANK MARIBOR D.D. - Fitch revised the current ratings for Nova KBM

POLISH FINANCIAL SUPERVISION AUTHORITY

UNI - EN REPORT No 3 / 2011

Date of issue: 2011-05-13

Short name of the issuer

NOVA KREDITNA BANK MARIBOR D.D.

Subject

Fitch revised the current ratings for Nova KBM

Official market - legal basis

Unofficial market - legal basis

Contents of the report:

Fitch, one of the leading global rating agencies, downgraded Nova KBM’s long-term issuer default rating from A- to BBB+. A short-term issuer default rating of the Bank remains the same at F2. The outlook is stable. This downgrade has no effect on Nova KBM’s compliance with the covenants set forth in its loan agreements. While Fitch recognises that the ultimate level of state ownership in Nova KBM has been maintained at about 51%, Fitch also notes the conflicting policy statements during the capital raising with respect to maintaining the state’s stake in the Bank, as well as a lack of clear strategy from the government regarding Nova KBM’s future ownership structure. In the agency’s view, the Bank’s capitalisation continues to be only moderate given the high level of unreserved non-performing loans (NPLs) and sizeable exposures to the troubled construction/real estate industry and holding companies. The Bank’s level of internal capital generation is also weak in light of moderate pre-impairment profit, a high level of loan impairment charges and sluggish demand for new credit in the economy. Nova KBM's consolidated Tier 1 capital ratio stood at around 8.2% at the end of Q1 2011 (or 10.2% on a pro forma basis, allowing for the Q2 2011 €104 million equity injection). Nova KBM’s liquidity buffer remains adequate in view of the Bank’s refinancing needs in 2011. At the end of Q1 2011, it totalled €760 million and mainly comprised unencumbered assets eligible for refinancing with the European Central Bank. At the end of Q1 2011, the amount of loans borrowed in the international financial market as well as of the liabilities to the Ministry of Finance and the Bank of Slovenia falling due by the end of 2011 totalled around €550 million and was concentrated in May-June (about €280 million) and November-December (about €215 million).

Annexes

File Description

NOVA KREDITNA BANKA MARIBOR D.D.

(fullname of the issuer)

NOVA KREDITNA BANK MARIBOR D.D. Banki (ban)

(short name of the issuer) (sector according to clasification of the WSE in Warsow)

2505 Maribor

(post code) (city)

Vita Kraigherja 4

(street) (number)

[phone] [phone]

(phone number) (fax)

(e-mail) (web site)

SI94314527 586058000

(NIP) (REGON)

SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Date Name Position / Function Signature

2011-05-13 Matja� Kova�i� President of the management board