1)      confirmed the long-term foreign currency deposit rating at Baa3, which is at the same level as the Latvian sovereign bond rating;

2)      confirmed the short-term rating at the same level Prime-3;

3)      the Bank’s financial strength rating was downgraded to E+ with a stable Outlook.

The changes in the rating was performed due to the the deterioration of the Baltic economies including Latvia’s economy.

As a positive aspect in keeping long-term foreign currency deposit rating at the same level Moody’s notes the fact that the bank is wholly owned by the Latvian government and the bank’s role as a contributor of state funds to the SME sector.

As of May 31, 2009 the assets of Latvijas Hipotēku un zemes banka were LVL 1080 mln. and its equity capital together with subordinated liabilities comprised LVL 121 mln.