July, 30th, 2010 Rating Committee of RA Expert Rating has made the decision on assignment to the Bank GLOBUS of the credit rating according to the national scale at the level uaВВВ- (The Bank is characterized by sufficient credit capacity in comparison with other Ukrainian banks). Level of credit capacity depends on influence of unfavourable commercial, financial and economic conditions.

1. The agency has highly estimated quality of assets and liquidity of CB GLOBUS, Bank GLOBUS has
received on the given parameters the highest possible rating. Nevertheless, the loan portfolio of the Bank comprises a number of potential risks, has low level of branch and client diversification. The current high assessment of assets quality is somewhat optimistic, as the Bank started to work actively only in 2008, and most likely the quality of Bank loan portfolio will decrease. If the Bank would maintain the quality of loans at present level till the end of 2010, it may serve as a precedent for raising its credit rating.
2. The Bank GLOBUS maintained redundant adequacy of capital. And though in dynamics the capital
adequacy gradually decreased, its current level has been very far from limiting norms. Redundant adequacy of regulatory capital (Н2) at the level of 27 % with norm of 10 % added to the Bank significant strength reserve which looked even more impressively against high assets quality and redundant liquidity.
3. We assessed diversification of Bank GLOBUS activity as adequate. At rather good diversification of
funding base, the client and branch diversification of loan portfolio has a lot to be improved. The Agency expects that in proportion to expansion of Bank activity, including due to growth of branch network, the level of high profile customers concentration in the loan portfolio of the Bank will decrease to an optimal value.
4. Bank GLOBUS does not possess a sufficient share of the market and does not perform large-scale activities. Its share in the banking system of Ukraine was estimated for 01.07.2010 at the level of less than 0,07 %, at that at the beginning of Q2 2010 Bank GLOBUS ranked No. 106 in NBU ranking of assets amount. According to the Agency, the small size of the Bank and the place in the 4th group of banks as per NBU classification have limited for the Bank access to some segments of monetary market and market of banking services, and also had negative impact on some competitive characteristics of its products. According to the Agency, for example, the Bank used to compensate absence of extensive branch network by a more flexible tariff policy.
5. The Agency focuses attention on high transparency level of Bank GLOBUS, its readiness to disclose
information about beneficiaries to the level of individual persons, presence of considerable volume of open information on Bank activity, including its aggregate financial reporting.

Rating Report (Engl)