Press release
Krasnodar, November 3, 2009: Southern Telecommunications Company (UTK) [(RTS: KUBN, KUBNP; ÌICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line operator in the Southern Federal District of Russia, hereby announces that Standard & Poor’s has revised the company’s credit rating from Negative to Stable. At the same time, UTK’s long-term credit rating was reaffirmed at B, and its national scale rating at ruA-.
In the opinion of the agency’s analysts, the upgrade reflects the recent improvement in UTK’s liquidity. “The company has managed to refinance the bulk of its short-term debt. UTK recently issued a RUR 3 bln bond and received several bilateral credits from large creditor banks. An important circumstance is that all liabilities are mid-term, which is having a positive impact on UTK’s liquidity”, according to a source at Standard & Poor’s.
UTK’s status as the major telecom operator in the Southern Federal District, and its leadership position in the traditional and value-added services segment also exerted a positive impact on the company’s rating.
