Press release
North-West Telecom was ranked 13th in terms of transparency among Russia’s 90 largest public companies according to the results of a study on information transparency conducted in 2009 by Standard & Poor’s Corporate Governance Ratings Service.
NWT’s information transparency indicator rose to 70% (up up from 64% in 2008). As a result, North-West Telecom is only 1 percentage point away from the top ten.
NWT’s score, based on the components of the information transparency index, can be summarized as follows:
- Ownership structure and shareholder rights – 68% (average score – 59.5%);
- Financial and operating information – 71% (average score – 57.3%);
- Composition and procedures of the Board of Directors and management – 72% (average score – 47.9%).
The level of NWT’s information transparency is slightly higher than the average Russian indicator and matches the metrics achieved by developed countries. As a result, NWT’s overall score is equal to the transparency index of US companies and overshoots the indexes of Germany, France and Japan.
In addition, North-West Telecom has one of the highest information transparency rating based on the indicator “Composition and procedures of operations of the Board of Directors and management”. Only one of the leaders of the rating has a higher score.
The high rating assigned by authoritative corporate governance experts confirms the correctness of NWT’s communications strategy, which is aimed at achieving a high level of information transparency and openness. Commenting on this event, the deputy general director of corporate relations at NWT Ella Tomilina pointed out that “Our company for a number of years already has earned itself a respectable place among elite Russian companies in terms of information transparency thanks to its steady efforts aimed at sharpening the investment appeal of North-West Telecom. We do not intend to rest on our laurels and will continue to improve the quality of information disclosure for investors. This year we prepared the first report on corporate social responsibility, began to disclose quarterly IFRS financial statements, and continued to reduce the timeframe for the auditor to complete the annual IFRS financial statement.
The study on information transparency is a research project spearheaded by Standard&Poor's and the Center for Economic and Financial Research and Development under the auspices of the RF School of Higher Economics. Such research has been carried out since 2002. When rating assignment are made, the only information used comes from public sources: annual reports, websites, and financial statements submitted to regulatory authorities.
