EESTI ÜHISPANK

ANNOUNCEMENT

24.08.1999

 

 

MOODY'S CHANGED THE OUTLOOK OF THE LONG TERM DEPOSIT RATINGS

OF EESTI ÜHISPANK FROM STABLE TO POSITIVE

 

Moody's Investors Service today changed  the outlook of the long  

term

deposit ratings  of Eesti  Ühispank from  stable to  positive. 

Moody's

confirmed  the  deposit  ratings  of  Ühispank at Baa3/Prime-3 and 

the

financial strength rating (FSR) at D.

 

Moody's said that  the change in  the outlook in  Ühispank's long 

term

ratings from  stable to  positive reflects  Swedish SEB's  entrance 

as

the bank's major shareholder  at the end of  last year as well  as 

the

increase of the stake during the current year.  Moody's has rated  

SEB

A2/Prime-1.

 

The confirmation  on the  FSR reflects  the amount  of work that 

still

has to be  done to improve  bank's risk management  and franchise. 

The

Estonian operating environment's vulnerability to external shocks  

and

the banking  market's small  size in  absolute terms  are 

constraining

factors on all Estonian banks' FSRs.

 

"The  change  in   the  long  term   deposit  rating  indicates   

good

co-operation between Ühispank  and its major  shareholder SEB ,"  

said

Ühispank's vice president  Mr.  Margus  Schults. "The improvements  

in

the franchise  and product  development are  already witnessed  by 

our

individual as well as corporate clients. Since the beginning of  

1999,

the bank has increased market share in these client segments. We  

have

also launched  a programme  to improve  our risk  management lead 

by a

former vice president of SEB New York branch," added Mr. Schults.

 

At end of July,  the bank's assets totalled  EEK 14.3 billion and  

the

bank  serviced  nearly  340,000  clients.  Since  the beginning of 

the

year, amount of private deposits in  the bank has increased by ca  

14%

and that of companies ca 18%.

 

For further information, please call:

 

Margus Schults

vice president

Tel: +372 66 56 650