Bank's Rating Upgrade

    Bank Przemyslowo - Handlowy PBK SA

Current Report no. 63/2003

Bank Przemyslowo - Handlowy PBK SA (BPH PBK) informs that it has been notified
that Moody's Rating Agency upgraded to D+ from D the financial strength rating
of Poland's Bank Przemyslowo-Handlowy PBK SA (BPH PBK). The outlook for the
bank's financial strength rating is stable.

The review focused on the structure of the bank's revenues, the impact of
restructuring efforts on the bank's cost base, asset growth and quality
improvements, risk management, and the risk profile of the bank.

The upgrade of BPH PBK's financial strength rating to D+ from D was a reflection
of improving trends in the bank's financial fundamentals since end-2002.
Management has been quickly and successfully restructuring the bank since the
legal merger between Bank Przemyslowo-Handlowy SA and Powszechny Bank Kredytowy
SA at end-2001, commented Moody's. Cost reductions are on track and BPH PBK's
cost efficiency should continue to improve as planned in 2003/2004.
Profitability will also be supported by much reduced credit related provisioning
charges and the disposal of non-core assets. Risk management has been
strengthened, observed Moody's, and BPH PBK's overall risk profile is also
reducing as the bank is swiftly developing retail activities, notably mortgage
lending activities. Like most Polish banks, BPH PBK has suffered since 2001 from
the effects of a challenging environment on interest margins and revenues, noted
Moody's. Although the development of retail as well as fee generating activities
is beginning to positively impact BPH PBK's revenues, the deep restructuring and
business refocus undertaken by the bank should really pay off in terms of
revenues as economic recovery firms up, commented Moody's.