I. STATEMENT ON RATING

Slovak rating agency grants following rating to the asset management company VÚB Asset Management, a.s.:

Long-term rating	BB+ (stable outlook)
Management´s quality rating	Q3+

Granted long-term rating BB+ (stable outlook) is one degree below the risk level of the Slovak Republic for the transaction in foreign currency (BBB- stable outlook). Quality management rating of VÚB Asset Management is Q3+, representing the higher (above-average) level of process management, portfolio management and evaluation of external environment affects.

Rationale:

• The company VÚB Asset Management, a.s. has been established in April 2000 and as for its market share it is one of the leaders in sales of mutual funds - as for the cumulative sales took the fourth place on the market, it had 12,3 % market share based on net sales as of September 27, 2002. The company managed assets in the amount of SKK 1,17 billion as of September 24, 2002. The only shareholder of VÚB Asset Management, a.s. is Všeobecná úverová banka, a.s., the 95 % owner of which is the Italian banking group IntesaBci. Strong owner background provides huge potential for acquisition of new clients particularly by use of large VÚB distribution network. Strategic target of the shareholder is to be the leader on the market of mutual funds in the time horizon of five years.
• Selection of securities in the portfolio and its management is based on both quantitative and qualitative methods. In equity and mixed funds, VÚB Asset Management uses intense capacities and know-how of NEXTRA Investment Management from Intesa BCI-Group, being one of the top asset management companies on the European market (No. 5) and managing assets in the value of EUR 120 billion. The combination of quantitative and qualitative methods in portfolio management is a modern approach, but it doesn't concern all funds managed by the company. Compared with the competition, even though it has to state that positive trend has been seen in the last couple of months. We positively appreciate the development of integrated management information system that should be able to offer high quality and timely analysis required by strategic management. On the other hand, competition analysis shows some deficiencies.
• System of company's internal rules basis is considered to be well developed. We appreciate the fact that there will be update of internal standard system in the coming couple of months due to organisational changes in the parent company. We see opportunities in the absence of procedures focussed on the area of risk management and monitoring of trade portfolio credibility. We highly appreciate the system of internal control mechanisms performed by the depository. Internal check is realised using the control structures of VÚB, a.s. - control and internal audit department.
• The asset management company has well-developed (high sophisticated) sales system, long-term conception in product sales and clearly defined funds strategy. Since starting of the activities, the company spent lot of finance for marketing activities, which affected the realised profit/loss of the company. We positively evaluate the fact that the company has concluded new mandatory contract with VÚB in October 2002, according to which the company will focus on so called "core business" and all further activities related to marketing, training of sales people etc. will be performed out of company intro the group of VÚB.

Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.

Slovak Rating Agency
Bratislava, 08 October 2002