NOVA KREDITNA BANK MARIBOR D.D. - Moody?s downgraded Nova KBM d.d. (34/2012)

| | POLISH FINANCIAL SUPERVISION AUTHORITY | | | | | | | | | | |
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| | | | | UNI - EN REPORT No | 34 | / | 2012 | | | | |
| | Date of issue: | 2012-07-26 | | | | | | | | | |
| | Short name of the issuer | | | | | | | | | | |
| | NOVA KREDITNA BANK MARIBOR D.D. | | | | | | | | | | |
| | Subject | | | | | | | | | | |
| | Moody?s downgraded Nova KBM d.d. | | | | | | | | | | |
| | Official market - legal basis | | | | | | | | | | |
| | Unofficial market - legal basis | | | | | | | | | | |
| | Contents of the report: | | | | | | | | | | |
| | In compliance with the Ljubljana Stock Exchange Rules and the applicable legislation, Nova KBM d.d., Maribor, hereby makes the following announcement: On 26 July 2012, Moody's Investors Service downgraded the ratings of Nova KBM from Ba2/Non-Prime/E+ to B3/Non-Prime/E. The outlook is negative. Moody?s says that the downgrade reflects the deterioration of the Bank?s standalone financial fundamentals, including rapid problem loan formation and the erosion of its risk-absorption capacity, as well as the rating agency?s views of the willingness of the government to provide support, balanced against a recognition of the fiscal challenges of supporting multiple banks and the government?s preference to find private sources for recapitalisation. Overall, the downgrade reflects the significantly increased pressure on the Bank?s capital adequacy, which is driven by on-going and severe asset-quality deterioration. The capital position of Nova KBM deteriorated in the first half of 2012. Although the Bank announced
its intention to address this deterioration by disposal of non-core assets, Moody?s considers that replenishing capital via asset sales remains challenging in the current market. Moody?s believes that the Bank will need to deleverage further to alleviate solvency pressures, which may impair the Bank?s franchise value. This announcement will be available on the Bank's website (www.nkbm.si) from 26 July 2012. | | | | | | | | | | |
| | Annexes | | | | | | | | | | |
| | File | Description | | | | | | | | | |

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY

| | | NOVA KREDITNA BANKA MARIBOR D.D. | | | | | |
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| | | (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) | | | |
| | | +386 2 229 22 90 | | +386 2 229 43 33 | | | |
| | | (phone number) | | | (fax) | | |
| | | (e-mail) | | | (web site) | | |
| | | SI94314527 | | 586058000 | | | |
| | | (NIP)
| | | (REGON) | | |

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY

REPORT
INFORMATION ABOUT THE ENTITY
SIGNATURE OF PERSONS REPRESENTING THE COMPANY