Fitch Upgrades Bank Pivdenny Rating.

Fitch Ratings upgraded its rating for Bank Pivdenny from CCC+ to B- with a stable outlook. Fitch said the upgrade reflected the bank’s strong fundamentals and continued extension of the branch-network. Alexander Viktorov: During 1H06 the bank showed strong performance results by expanding its loan portfolio by 32.4% since the start of the year against an industry average of 27.3%. The bank’s deposit base grew by 36% compared to 11% for the sector. The bank’s 1H06 net income increased by a remarkable 95% yoy and reached $3.9m. In June Pivdenny’s shareholders decided to reorganize the bank into an open joint stock company as a first step towards a planned private placement.