The rating change is due to a change in the methodology for assigning ratings to hybrid instruments, which Moody's Investors Service introduced in November 2009. Moody's Investors Service amended the methodology as a result of losses incurred by the holders of hybrid instruments, notwithstanding that banks have met other obligations. By adopting this change in the methodology, Moody's Investors Service started to distinguish between the 'senior' liabilities of banks and their hybrid instruments. Moody's Investors Service announced already upon the change in the methodology that it will probably downgrade the ratings of hybrid instruments.
The rating of Nova KBM d.d. remains unaffected by the above stated change in the rating assigned to hybrid instruments issued by Nova KBM d.d.
