Credit Rating

6th Feb 2006 07:20

Pyaterochka Holding N.V.06 February 2006 THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE RUSSIAN FEDERATION, AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OF AMERICA. 6 February 2006 PYATEROCHKA ASSIGNED 'Ba3' RATING BY MOODY'S Pyaterochka Holding NV, Russia's leading retailer, was assigned a global scale 'Ba3' corporate family rating with stable outlook by Moody's Investors Service onFebruary 3, 2006. At the same time, Moody's Interfax Rating Agency assigned an'Aa3.ru' long-term national scale credit rating to the company. According to Moody's and Moody's Interfax, the 'Ba3' global scale ratingreflects Pyaterochka's global default and loss expectation, while the 'Aa3.ru'national scale rating reflects the standing of the Pyaterochka's credit qualityrelative to its domestic peers. The strong credit rating awarded to Pyaterochka was described by Moody's asreflective of 'the following positive factors: (i) the large potential forfurther growth and development of the Russian large retail food market; (ii) thecompany's strong positions in its key markets of the Moscow region and St.Petersburg and access to other Russian regions through established franchiseoperations; (iii) management's track record of delivering high growth; (iv) highmargins...and tight cost control; and (v) some flexibility with respect toleverage." In addition, Moody's commented that "the company's ability to generate largeoperating cash flow is based on its solid market positions supported by itsstrong name recognition, proven format acceptance by the market, existing largeand conveniently located store network and cost-efficient distributioninfrastructure." This additional international credit rating gives Pyaterochka the strategicflexibility to diversity its funding sources by accessing the internationalfinancial markets. In addition, this strong credit rating serves to solidifyPyaterochka's credibility with investors in its Russian ruble bonds. - End - Enquiries to: Tanja DjurdjevicInvestor RelationsMobile : +7 495 724 6414Email : [email protected] Notes to Editors: Pyaterochka is a leading Russian retailer, with a chain of 347 company-managedstores located in the Moscow, St. Petersburg and Yekaterinburg areas as of 1January 2006. In addition to the company's own stores, franchisees operate 404Pyaterochka-branded stores in the Russian regions outside of Moscow and St.Petersburg, Kazakhstan and Ukraine as of 1 January 2006. Pyaterochka's stores are conveniently located "soft" discount stores, open sevendays a week from 9am to 10/11pm, offering a product range of up to 4,500 itemscovering the day-to-day needs of its customers. The information contained herein is not for publication or distribution in theUnited States of America. These materials do not contain or constitute an offerof securities for sale in the United States. The securities of PyaterochkaHolding N.V. have not been and will not be registered under the U.S. SecuritiesAct of 1933, as amended, and may not be offered or sold in the United Statesabsent registration under that Act or an available exemption from it. This announcement does not constitute an advertisement, an offer to sell or thesolicitation of an offer to purchase any securities in the Russian Federation orany other jurisdiction. These materials are directed only at (a) persons who have professionalexperience in matters relating to investments who fall within Article 19(1) ofthe Financial Services and Markets Act 2000 (Financial Promotion) Order 2001(the "Order") or (b) high net worth entities, and other persons to whom it mayotherwise lawfully be communicated, falling within Article 49(1) of the Order(all such persons together being referred to as "relevant persons"). Any personwho is not a relevant person should not act or rely on these materials. Personsdistributing these materials must satisfy themselves that it is lawful to do so. This information is provided by RNS The company news service from the London Stock Exchange

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