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ratings

The Management Board of Kredyt Bank S.A. informs that on June 14, 2012 Fitch Ratings has affirmed Kredyt Bank's Long-term IDR at 'BBB' and removed it from Rating Watch Positive (RWP). A full list of rating actions is at the end of this current report.

The affirmation of KB’s Long-term IDR and removal from RWP reflects Fitch’s view that the merged bank’s IDR will likely be at the same level as KB's current IDR, which is driven by support from KB’s parent KBC (‘A-‘/Stable).

The Rating Watch Positive (RWP) on KB's VR continues to reflect Fitch's view that the VR is likely to be upgraded as a result of the merger. 

Kredyt Bank presents below the current ratings together with the rating actions taken by Fitch Ratings: 

• Long-term foreign currency IDR: affirmed at 'BBB', removed from RWP; assigned Stable Outlook
• Short-term foreign currency IDR: affirmed at 'F3', removed from RWP
• Viability Rating: 'bb+', remains on RWP
• Support Rating: affirmed at '2', removed from RWP

The Management Board of Kredyt Bank S.A. informs that on March 1, 2012 Fitch Ratings has revised the Rating Watch on Kredyt Bank's (KB) Long-term Issuer Default Rating (IDR) to Positive (RWP) from Evolving (RWE). 

Fitch Ratings states that the rating actions follow the statement made on February 28 by Banco Santander and KBC announcing the agreement to merge their Polish banking subsidiaries. According to the agreement, BZ WBK will merge with KB by issuing new shares to KB's shareholders in exchange for their shares in KB. On completion of the merger, Santander will be majority shareholder of the combined entity and KBC will hold a minority stake. The transaction is

subject to regulatory approval from the Polish FSA and antitrust approval from the European

Commission.

The Rating Watch Positive (RWP) on KB's support-driven IDRs and Support Rating reflects Fitch's view that these ratings are likely to be upgraded as a result of the merger. The merged entity's IDRs will be underpinned by support from Santander.

Fitch will resolve the RWP on KB's ratings and withdraw the ratings, once the legal merger is

completed. According to the initial timetable, this is not expected before Q412.

With reference to the above, Kredyt Bank presents the current ratings together with the rating actions taken by Fitch Ratings:

• Long-term foreign currency IDR: 'BBB', Rating Watch revised to Positive from Evolving
• Short-term foreign currency IDR: 'F3', Rating Watch revised to Positive from Evolving
• Viability Rating: 'bb+', placed on RWP
• Support Rating: '2', Rating Watch revised to Positive from Evolving

The Management Board of Kredyt bank S.A. informs that on February 3, 2012 Fitch Ratings has downgraded Kredyt Bank’s (KB) Long-term Issuer Default rating (IDR) to 'BBB' from 'A-'. Fitch has also maintained KB’s Long-term IDR on Rating Watch Evolving (RWE). A full list of rating actions is at the end of this report.

The rating actions follow the downgrade of the bank’s parent, KBC Bank (KBC), to 'A-' from 'A' on January 31, 2012. The downgrade of KB’s Long-term IDR also reflects the reduced probability ofthat KBC will be able to support the bank. In addition, Fitch has reassessed the appropriate notching between the ratings of KBC and KB, in light of KBC’s intention to sell its stake in KB and the non-strategic nature of its holding, and as a result widened this differential to two notches from one. This reflects the non-strategic nature of KB in light of KBC’s intention to sell its stake in the bank.

At the same time, KB’s ratings continue to reflect what Fitch views as a strong commitment on the part of KBC to support KB as long as it remains the bank’s major shareholder.

The RWE on KB's IDRs and Support Rating reflects the potential for these ratings to be upgraded or downgraded if KB is bought by an entity with a greater or lesser ability to provide support than KBC.

With reference to the above, Kredyt Bank presents the current ratings together with the rating actions taken by Fitch Ratings:

• Long-term foreign currency IDR: downgraded to 'BBB' from 'A-', RWE maintained
• Short-term foreign currency IDR: downgraded to 'F3' from 'F2', RWE maintained
• Viability Rating: 'bb+', unaffected
• Support Rating: downgraded to '2', from '1', Rating Watch revised to Evolving from Negative.

The Management Board of Kredyt Bank S.A. makes publicly known that on December 22, 2011 Fitch Ratings maintained Rating Watch Evolving on both Kredyt Bank's Long-term foreign currency rating (IDR) and Short-term foreign currency (IDR), as well as affirmed Rating Watch Negative on the Support Rating.

With reference to the above rating decisions, the Banks ratings have not changed and are as follows:

• Long-term foreign currency IDR: 'A-', Rating Watch Evolving maintained 
• Short-term foreign currency IDR: 'F2', Rating Watch Evolving maintained 
• Viability Rating: 'bb+', Unaffected 
• Individual Rating: 'C/D', Unaffected 
• Support Rating: '1', Rating Watch Negative maintained

The Management Board of Kredyt Bank S.A. informs that Fitch Ratings has placed on July 14, 2011 Kredyt Bank's 'A-' Long-term Issuer Default Rating (IDR) on Rating Watch Evolving (RWE).

The rating action follows the announcement by KB's majority shareholder, Belgium's KBC Bank that it intends to sell its 80% stake in KB.

The RWE on KB's Long-term and Short-term IDRs reflects Fitch's view that the bank's IDRs could be upgraded if KB is bought by an entity with a higher rating than KBC. Conversely, if KB is sold to a buyer with a weaker ability to support the bank, KB's IDRs could be downgraded.

Fitch has placed KB's Support Rating of '1' on Rating Watch Negative (RWN) to reflect the fact that this rating could be downgraded if the bank is purchased by an entity with a lower rating than KBC. If the sale was to a stronger entity, or the sale fails to go through, the Support Rating would likely be affirmed at its current level.

Fitch believes that prior to the actual sale, the probability that KBC would support KB remains extremely high, despite KBC's intention to divest its Polish subsidiary.

Fitch does not expect KB's Individual Rating to be significantly affected if the sale goes ahead.

The rating actions are as follows:

• Long-term foreign currency IDR: affirmed at 'A-'; placed on Rating Watch Evolving
• Short-term foreign currency IDR: affirmed at 'F2'; placed on Rating Watch Evolving
• Individual Rating: affirmed at 'C/D'; placed on Rating Watch Negative
• Support Rating: affirmed at '1'

The Management Board of Kredyt Bank S.A. reveals that it was informed on June 22, 2011 that the FitchRatings has assigned Kredyt Bank S.A. :

• Long-term Issuer Default Rating (IDR) of ‘A-‘ with Stable Outlook,
• Short-term IDR of ‘F2’,
• Support Rating of ‘1’,
• Individual Rating of ‘C/D’.

FitchRatings pays attention that Long-term and Short-term ratings reflect high potential support that Kredyt Bank S.A. can expect to receive from its majority sharholder – KBC.

Assigning individual rating Fitch Ratings took into consideration inter alia: fast pre-crisis expansion of the loan book, risks embedded in the substantial exposure to foreign-currency mortgages, quality of the loan portfolio as well as the capitalization level.
In the opinion of the Agency these factors are balanced by the adequate liquidity and improved funding structure.

The Management Board of Kredyt Bank S.A. informs of the termination of the agreement on providing rating services, concluded between Kredyt Bank S.A. and Fitch Ratings. This decision results from the fact that the Bank doesn't plan to obtain long-term financing from external sources in the nearest future, justifying possession of the ratings.
The Management Board of Kredyt Bank S.A. also informs that on March 30, 2009 Fitch Ratings affirmed the following ratings of the Bank: Long-term Issuer Default Rating (IDR): affirmed at 'A', Outlook Negative, Short-term (IDR): affirmed at 'F1' and Support Rating: affirmed at '1'.
Simultaneously Fitch Ratings downgraded KB's Individual Rating to 'D' from 'C/D'. Fitch Ratings points out that the above decision reflects the deteriorating operating environment in Poland, which is likely to result in lower revenues and higher risk costs for Polish banks. In this context, Fitch views the current capitalisation of the bank as modest, as it provides only limited buffer in the stress scenario.

The Management Board of Kredyt Bank S.A. informs that Fitch Ratings downgraded on December 2, 2008 the Kredyt Bank's long term Issuer Default Rating (IDR) to A from A+ with a Negative Outlook. At the same time the Agency removed the above rating from the Rating Watch Negative (RWN).
This decision is directly connected with the Fitch's decision on downgrading on December 2, 2008 the KBC Bank's long term Issuer Default Rating (IDR) to A+ from AA- with a Negative Outlook.
At the same time Kredyt Bank S.A. informs that the levels of the remaining ratings of Kredyt Bank previously granted by Fitch have been confirmed, namely:

• short term IDR: F1
• individual rating: C/D
• support rating: 1

The Management Board of Kredyt Bank SA informs that Fitch Ratings placed on 24th October 2008 the Kredyt Bank's Issuer Default Rating (IDR) of A+ on Rating Watch Negative (RWN).
This decision is directly connected with the Fitch's decision on placing on 24th October 2008 the KBC Bank's Issuer Default Rating (IDR) on Rating Watch Negative (RWN).
At the same time the Kredyt Bank S.A. informs that the levels of the remaining ratings of Kredyt Bank previously granted by Fitch have been confirmed, namely:

• short term rating: F1
• individual rating: C/D
• support rating: 1

The Management Board of Kredyt Bank S.A. makes publicly know that it received on February 29, 2008 from the Fitch Ratings an information on the upgrade of Kredyt Bank's Individual rating to C/D from D.
Other ratings have been affirmed at previous level:

• Long-term Issuer Default (IDR): A+
• Short-term: F1
• Support: 1.

The Outlook for rating remains Stable.

In the opinion of Fitch Ratings, the upgrade of Individual rating to C/D (scale from: A to E) reflects the improvements in the bank’s franchise, profitability and asset quality. The Individual rating, however, still reflects the bank's modest capitalization and its relatively high proportion of funding from the parent KBC Bank NV rated AA- / Stable Outlook).

Fitch Ratings states that the Long-term Issuer Default rating: A+ (scale from AAA to D), Support rating: 1 (scale from 1 to 5) and Short-term rating: F1 (scale from F1 to D) are based on the extremely high potential support from its parent, in case of need. The Stable Outlook for KB reflects that for KBC.

The Management Board of Kredyt Bank S.A. informs that on February 28, 2007 Fitch Ratings affirmed the following ratings for Kredyt Bank S.A.:

• Issuer Default: A+
• Short term: F1
• Individual: D
• Support: 1

The Outlook remains stable.

Fitch Ratings draws attention to the fact that the Issuer Default rating (scale from AAA to D) and the Short Term rating (scale from F1 to D) which build on the low credit risk of the Bank, include support form KB’s strategic investor KBC Bank N.V. rated by Fitch Ratings AA- with stable outlook.

The individual rating D (scale from A to E) reflects hypothetical possibility of the occurrence of the events which could call for external support.
The support rating 1 (scale from 1 to 5) denote very high probability of obtaining such external support.

Fitch Ratings points out that KB's new focus on sales has reversed declines in its market share, while risk appetite has remained conservative.

The Management Board of Kredyt Bank S.A. announces that the international rating Agency Fitch Ratings upgraded on August 17, 2006 the long-term rating of Kredyt Bank S.A. from A to A+.

The other ratings remained at the unchanged level, i.e.:

• Individual rating - D
• Short-term rating - F1
• Support rating - 1

The upgrade of long-term rating is justified by the Agency by Poland's Country Ceiling upgrade from A to A+.
Following the upgrade Fitch Ratings changed an outlook for long-term rating from "positive" to "stable".

The Management Board of Kredyt Bank S.A. announces that the international rating Agency Fitch Ratings upgraded on December 5, 2005 the individual rating of Kredyt Bank S.A. from D/E to D.

The other ratings remained at the unchanged level, i.e.:

• Long-term rating - A
• Short-term rating - F1
• Support rating - 1

An outlook for long-term rating remains positive.

The upgrade of individual rating is justified by the Agency, among other things, by return to profitability by the Bank as well as the improvement in efficiency of functioning.
Moreover, the Agency draws attention to the fact that long- and short-term ratings take into account the support on the part of the strategic investor - KBC Bank NV rated AA- by Fitch Ratings.

Fitch Ratings has changed the Long-term rating Outlook of Kredyt Bank S.A. from Stable to Positive.

The Management Board of Kredyt Bank S.A. informs that Fitch Ratings, the international rating agency has affirmed on November 22, 2004 the following ratings for Kredyt Bank S.A.:

• Long-term rating - A
• Short-term rating - F1
• Support rating - 1
• Individual rating - D/E

The outlook for a long-term rating of Kredyt Bank is stable.

Fitch ratings stressed that long- and short-term ratings of Kredyt Bank reflect the support Kredyt Bank could expect from its majority shareholder, KBC Bank NV, rated by Fitch Ratings at AA-.

The positive changes introduced by the Bank's Management Board in controlling, risk management, updating product base and setting profitability targets had a positive impact on the affirmed ratings.

The Management Board of Kredyt Bank S.A. announces that in connection with assigning a country ceiling rating to Poland as one of 10 new EU members at A level, international rating agency Fitch Ratings assigned the following ratings to Kredyt Bank:

• Long-term rating - A (previously BBB+)
• Short-term rating - F1 (previously F2)
• Support rating - 1 (previously 2)
• Individual rating - D/E (previously D/E)

Moreover, in connection with the change by Fitch Ratings of an outlook for Poland's long-term rating from positive to stable, the same change of an outlook for Kredyt Bank long-term rating took place.

Simultaneously Fitch Ratings stresses that long- and short-term ratings of Kredyt Bank take into account a support from the strategic investor, KBC Bank NV rated at AA- by Fitch Ratings.

The Management Board of Kredyt Bank S.A. announces that on November 24, 2003 Fitch Ratings international rating agency affirmed at the unchanged level:

• Long-term rating - BBB+
• Short-term rating - F2
• Support rating - 2

Simultaneously, the rating agency downgraded from D to D/E individual rating of Kredyt Bank S.A. The outlook for long-term rating remains positive.

Fitch Ratings said that the decision to downgrade Kredyt Bank's individual rating was taken in result of establishing new loan provisions in the fourth quarter 2003.

Moreover, the rating agency stressed that long- and short-term rating reflects the support provided by Kredyt Bank's majority shareholder, Belgian KBC Bank N.V. rated by Fitch Ratings at a high level of AA-.

KBC Bank NV declares a strong support for the activities of Kredyt Bank S.A. and in 2003-2004 intends to inject over PLN 1.8 billion to Kredyt Bank's own funds. Additionally, KBC Bank NV granted to Kredyt Bank S.A. guarantees amounting to PLN 3.5 billion and deposited with the Bank EURO 65 million in order to maintain concentration limits as well as the capital adequacy ratio, which, as Fitch Ratings said, should reach 12% in 2004.

The Management Board of Kredyt Bank S.A. announces that on November 4, 2003 international rating agency Fitch Ratings disclosed an information on the change of outlook for long-term rating of Kredyt Bank S.A. from stable to positive in connection with the same change of the sovereign rating for Poland.
Moreover, in the case Poland is assigned a higher long-term rating, Kredyt Bank S.A. may be assigned a higher rating of support, i.e. 1.
At the same time Fitch stresses that long- and short-term Kredyt Bank S.A. ratings (which are also constrained by the sovereign ratings for Poland) take into account a support from a strategic investor, i.e. KBC Bank N.V.

The other ratings remain unchanged:

• Long-term: BBB+
• Short-term: F2
• Individual: D
• Support: 2

The Management Board of Kredyt Bank S.A. announces that on September 22, 2003 Fitch Ratings, the international rating agency, affirmed Kredyt Bank's ratings:

• Long-term - BBB+
• Short-term - F2
• Individual - D
• Support - 2

The long-term outlook remains stable.

At the same time Fitch highlights that Kredyt Bank's short- and long-term ratings (constrained by Poland's sovereign rating) reflect the support provided by Kredyt Bank's majority shareholder, Belgian KBC Bank N.V. rated AA- by Fitch.

Affirming Kredyt Bank's individual D rating, Fitch Ratings noticed that although the Bank is still suffering from poor profitability and weak asset quality, the improvements are being implemented in the risk management systems and also the Bank is preparing for a commercial relaunch in 2004. The planned shares issue is expected to increase the Bank's capital adequacy ratio to ca 12%.

The Management Board of Kredyt Bank S.A. announces that on July 23, 2003 Kredyt Bank S.A. was informed by the international rating agency Fitch Ratings about the change of support rating for Kredyt Bank S.A. from 3 to 2. A higher support rating is caused by the changed methodology of assigning support ratings for banks.

Support ratings were assigned in accordance with the following scale (decreasingly): Support: 1, 2, 3, 4, 5.

The other ratings were not changed:

• long-term: BBB+
• short-term: F2
• individual: D

The Management Board of Kredyt Bank S.A. makes publicly known that on September 13, 2002 Fitch Ratings, international rating agency downgraded the Individual rating of Kredyt Bank S.A. to D from C/D. The Long-term, Short-term and Support ratings have been affirmed at BBB+, F2 and 3, respectively. The Outlook for Long-term rating remains Stable.

Fitch Ratings states that althoug KB's asset quality remains better than the sector average, Kredyt bank S.A. experienced rapid growth in the lost loans category.

At the same time Fitch stresses that Kredyt Bank's Long- and Short-term ratings (capped at the sovereign ceiling for Poland) continue
to benefit from the support provided by the strategic investor - KBC Bank NV (rated AA- by Fitch).

The Management Board of Kredyt Bank S.A. makes publicly known that on February 26, 2002 Fitch Ratings, international rating agency has placed C/D individual rating of Kredyt Bank S.A. on Rating Watch Negative. Long-term, Short-term and Support Ratings have been maintained at BBB+, F2 and 3, respectively.
The Outlook for Long-term rating remains stable.
Fitch Ratings states that the above decision is a consequence of the announced, consolidated fourth quarter 2001 results of Kredyt Bank S.A.
At the same time Fitch stresses that Kredyt Bank's Long- and Short-term ratings (capped at the sovereign ceiling for Poland) continue to benefit from the support provided by the strategic investor - KBC Bank NV (rated AA- by Fitch) and reflect KBC's growing role in the management of Kredyt Bank S.A.

The Management Board of Kredyt Bank S.A. makes publicly known that on November 30, 2001 it was notified by Fitch international rating agency that Kredyt Bank S.A. ratings were confirmed at the same level as those assigned in the year of 2000, i.e.:

• Long-term: BBB+
• Short-term: F2
• Individual: C/D
• Support: 3

Long-term BBB+ rating is the maximum rating that may be assigned to the Bank since it is the same as the rating assigned to Poland.

The ratings were assigned according to the following scale (decreasingly):

• Long-term: AAA, AA, A, BBB (investment grade), BB, B, CCC, CC, C, DDD, DD, D (speculative)
• Short-term: F1, F2, F3, B, C, D.
• Individual: A, A/B, B, B/C, C, C/D, D, D/E, E.
• Support: 1, 2, 3, 4, 5.

Date of assigning the rating - November 2001.

The Management Board of Kredyt Bank S.A., makes publicly known that on November 14, 2000 it was informed by International Rating Agency FITCH that the following ratings had been assigned to Kredyt Bank S.A., which are the same as those assigned to the Bank in 1999:

• Long-term: BBB+
• Short-term: F2
• Individual: C/D
• Support: 3

Long-term rating BBB+ is the maximum rating the Bank may be assigned, since it is the same as the one assigned to Poland.

The ratings were assigned according to the following scale (decreasingly):
 

• Long-term: AAA, AA, A, BBB Investment), BB, B, CCC, CC, C, DDD, DD, D (speculative).
• Short-term: F1, F2, F3, B, C, D.
• Individual: A, A/B, B, B/C, C, C/D, D, D/E, E.
• Support: 1, 2, 3, 4, 5.

The date of assigning ratings - October 2000

The Management Board of Kredyt Bank S.A., makes publicly known that on October 4, 1999 it was informed by International Rating Agency Fitch IBCA that the following ratings had been assigned to Kredyt Bank S.A.:

• Long-term: BBB+
• Short-term: F2
• Individual: C/D
• Support: 3

Fitch IBCA draws attention to the fact that Kredyt Bank S.A. is Poland's 8th largest bank in respect of assets in the Polish banking system and its market shares in deposits and loans slightly exceeds 4%. Since 1996 Kredyt Bank S.A. increased its assets almost 10 times, while the number of its outlets grew from 56 to 279 over that time. It is expected that in 1999 the further expansion of the Bank's outlets will take place as well as a 30% growth of total assets. In the past the Bank's growth to a great extent was achieved by take-overs of other banks, including the most important take-over of Polski Bank Inwestycyjny S.A. in 1997.

As predicted by Fitch IBCA, the greater participation of the Belgian shareholder in the share capital of Kredyt Bank S.A. will have an impact upon the Bank's long-term strategy. In the opinion of Fitch IBCA, so far the internal audit and information system of Kredyt Bank proved to be effective, while the management system was adopted to the development of the Bank's activity.

Long-term rating BBB+ is the maximum rating the Bank may be assinged, since it is the same as the one assigned to Poland.

The positive long-term and short-term ratings reflect the impact of Kredyt Bank's major shareholder, i.e. KBC Bank NV, which hold 48.6% of the Bank's share capital. In the Fitch IBCA'S opinion - in case of a need - KBC Bank would support Kredyt Bank, which is reflected in the Support rating equal to 3.

The ratings were assigned according to the following scale (decreasingly):

• Long-term: AAA, AA, A, BBB Investment), BB, B, CCC, CC, C, DDD, DD, D (speculative).
• Short-term: F1, F2, F3, B, C, D.
• Individual: A, A/B, B, B/C, C, C/D, D, D/E, E.
• Support: 1, 2, 3, 4, 5.

The Management Board of Kredyt Bank S.A. informs of the termination of the agreement on providing rating services, concluded between Kredyt Bank S.A. and Moody's Investors Service.
This decision results from the fact that the Bank doesn't plan to obtain long-term financing from external sources in the nearest future, justifying possession of the ratings.
According to the information received from Moody's Investors Service on March 11, 2009, withdrawal of the ratings does not reflect a change in the Bank's creditworthiness.

The Management Board of Kredyt Bank S.A. informs that on January 26, 2009 Moody’s Investors Service rating agency affirmed long-term deposit rating of Kredyt Bank S.A. at A2 and changed the outlook of the above rating to negative from stable.
These rating decisions are directly connected with the Moody’s decision on downgrading the KBC Bank’s ratings – the parent entity of Kredyt Bank S.A.
Simultaneously Kredyt Bank S.A. informs that the levels of the remaining ratings of Kredyt Bank S.A. previously granted by Moody’s have been confirmed, namely:

• short term deposit rating: Prime-1,
• bank financial strength rating (BFSR): D.

The outlook for the above ratings remains stable.

The Management Board of Kredyt Bank S.A., on the basis of the information received on February 26, 2007 from Moody's Investors Service rating agency, informs that on February 23, 2007, due to the implementation of new methodologies in calculating ratings, Moody's Investors Service rating agency changed financial strength rating of Kredyt Bank S.A. from D- to D (stable outlook).

Long- and short-term ratings for deposits remain unchanged at A2/P-1, respectively, with the stable outlook. A2 rating signifies a good capability to settle obligations, while P-1 rating signifies an excellent capability to settle short-term obligations.

The Management Board of Kredyt Bank S.A. informs that on September 19, 2005 the international rating agency Moody's Investor's Service upgraded the rating of financial strength of Kredyt Bank S.A. from "E+" to "D-" (stable outlook).

Long- and short-term ratings for deposits remain unchanged at A2/P-1, respectively, with the stable outlook. A2 rating signifies a good capability to settle obligations, while P-1 rating signifies an excellent capability to settle short-term obligations.

Moody's Investors Service agency draws attention that the upgrading of financial strength rating is related to an improvement of Kredyt Bank S.A. financial position, moreover the agency stresses a significant decline in the Bank's costs connected with the realization of restructuring program as well as a high level of the Bank's capital adequacy ratio.

The Management Board of Kredyt Bank S.A. announces that on November 21, 2003 Moody's international rating agency affirmed long- and short-term deposit ratings at "A2" and "P-1", respectively, with stable outlook. "A2" rating signifies good capability to meet obligations, while "P-1" rating affirms an excellent capability to meet short-term obligations.

Simultaneously Moody's rating agency downgraded from "D-" to "E+" the financial strength rating of Kredyt Bank S.A.

Moody's said that the decision to downgrade Kredyt Bank's financial strength was taken in connection with the announcement that new loan provisions in the fourth quarter 2003 alone would affect the Bank's equity.

Moreover, the rating agency stressed that the Belgian KBC Bank N.V. which was assigned by Moody's high ratings at "Aa3/P-1" and financial strength "B" is majority shareholder of Kredyt Bank S.A. Currently KBC is providing a significant financial support to Kredyt Bank S.A. and declared further investments aimed at maintaining the Bank's safety. Altogether, KBC's financial support for Kredyt Bank S.A. will reach nearly PLN 5 billion.

The Management Board of Kredyt Bank S.A. informs that the rating agency Moody's Investors' Service upgraded the Bank's rating from Baa1/P-2 to A2/P-1 with a stable outlook and confirmed A2 rating for senior unsecured foreign currency debt of Kredyt International Finance BV, a company 100%-owned by Kredyt Bank S.A., whose debt is guaranteed by Kredyt Bank S.A.

The agency took into account a strategic participation of KBC Bank NV in the shareholders' structure of Kredyt Bank S.A.. KBC Bank NV is rated at Aa3/P-1 with a stable outlook.

The Management Board of Kredyt Bank S.A. makes publicly known that on 8 November 2002 Moody's Investors Service Ltd. rating agency downgraded the Financial Strength Rating of Kredyt Bank S.A. from "D" to "D-". The Outlook for the Financial Strength Rating is Stable.
Other rating grades have not been changed, i.e. Long-term rating at "Baa1" and Short-term rating at "P-2".

The agency states that although earnings from banking activity continue to grow thanks to realised investments in development of products and distribution channels, the decision is connected with, among others, high financial burden to the Bank due to credit and market risk.

The Management Board of Kredyt Bank S.A. makes publicly known that rating agency Moody's Investors Service upgraded from Baa1 to A2 rating for the senior unsecured notes guaranteed by Kredyt Bank S.A. and issued by Kredyt International Finance - a subsidiary wholly owned by Kredyt Bank S.A.

Kredyt Bank SA's long-term Baa1, short-term P-2 deposit ratings and its D financial strength rating (both with stable outlooks) the rating agency has remained unchanged.

The rating upgrade of notes issued by Kredyt International Finance B.V. is the result of the change in the approach of Moody's Investors Service to rating the foreign currency debt securities of some issuers. Methodology currently applied allows to assign to the debt securities ratings exceeding issuers home country ceilings.

The Management Board of Kredyt Bank S.A. makes publicly known that the rating agency
Moody's Investor Service downgraded the rating of the financial strength of some Polish banks, including Kredyt Bank S.A., from "D+" to "D". After that change the outlooks of financial strength are now "stable". Moody's Investor Service explained that the above change in rating reflects the impact of difficult operating environment on the financial fundamentals of Polish banks.
At the same time Moody's Investor Service left unchanged Kredyt Bank S.A. long-term and short-term ratings, which are as follows:

• Long-term rating - "Baa1"
• Short-term rating - "P-2"

The Management Board of Kredyt Bank S.A. makes publicly known that the rating agency Moody's Investors Service Limited changed the outlook for the financial strength from stable to negative D+ for a number of Polish banks, including Kredyt Bank S.A. Moody's Investors Service Limited rating agency justified the said change by the deteriorating situation of Polish economy and financial condition of Polish companies, which may have an adverse impact on the banks' credit portfolios and thus negatively affect their future financial results.
Moreover the Bank's Management Board would like to draw attention to the fact that the rating agency Moody's Investor Service Limited has not changed the other ratings of Kredyt Bank S.A. both long-term and short-term and these are as follows:

• long-term rating - "Baa1"
• short-term rating - "P-2"

The Management Board of Kredyt Bank S.A. makes publicly known that on January 10, 2001 Kredyt Bank S.A. was informed by the Moody's Investor Service rating agency about assigning to Kredyt Bank S.A. the following ratings:

• long-term bank deposit rating"Baa1"
• short-term bank deposit rating"P-2"
• financial strength rating "D"

The rating Baa1/P-2 is the maximum rating the Bank may receive since it is the same as the rating assigned to Poland.
The positive long-term and short-term ratings as well as the financial strength rating reflect the influence of the strategic investor, which is KBC Bank NV as well as a stable funding position giving a possibility of further growth.

The scale of ratings assigned by Moody's Investor Service is as follows (decreasingly):

• Long-term bank deposit ratings: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C.
• Short-term bank deposit ratings: P-1, P-2, P-3, Not Prime
• Financial strength ratings: A, B, C, D, E