Fitch Ratings confirms ratings awarded to Parex Banka


The international Fitch Ratings company has reaffirmed the ratings of Parex
banka. The long-term rating of bank is at “RD” level, the short-term rating is
at “RD”, the individual rating is at “F” level, and the support rating is at
the level of “5”. 

The affirmation of the rating reflects the extension of deposit restrictions
imposed on the bank by the Latvian banking regulator. At the same time, the
agency notes that the restrictions, which were imposed on the bank in December
2008, gradually have been softened, as well as considerable reduction in the
amount of the restricted funds. 

Fitch Ratings considers as positive the government support provided to the
bank, as well as the fact that the European Bank for Reconstruction and
Development has become a shareholder of the bank.  The agency also notes that
the bank's operations are affected by losses, the quality of assets, the need
for additional capital, and deleveraging and decline in non-resident deposits. 
At the same time, deposits made by residents are deemed to be more stable.
Although remains weak, the bank's liquidity continues to improve. 

Upward pressure on the long-term rating could arise from removal of deposit
restriction and/or from successful restructuring of Parex banka. 

About Parex banka:
Founded in 1992, Parex banka currently employs some 1 900 people at branches
all over Latvia and offers universal banking services throughout the Baltic
region, the CIS and other European nations such as Germany, Switzerland and
Sweden. Parex Group companies operate across the banking, finance, leasing,
asset management and life insurance sectors. Parex banka has signed up to the
European Code of Conduct on housing loans. 


For more information:
Inga Saleniece, acting director
Corporate Communications Department
Telephone: +371 67778870 or +371 26564629
E-mail: pr@parex.lv