MOSCOW (Standard & Poor's) March 9, 2004--Standard & Poor's Ratings Services said today it raised its long-term corporate credit ratings on Russia-based diversified holding group AFK Sistema to 'B' from 'B-', reflecting an improvement in the group's liquidity and the solid performance of its telecommunications assets. Standard & Poor's expects that Sistema will maintain its strategy of streamlining its core businesses in telecoms, insurance, electronics, and real estate through acquisitions, partnerships, and direct investments. At the same time, Standard & Poor's raised its long-term foreign currency corporate credit rating on related entity Moscow City Telephone Network (JSC) (MGTS) to 'B' from 'B-' and assigned its 'B' local currency corporate credit rating to the company. In addition, Standard & Poor's raised its Russia national scale corporate credit and senior unsecured debt ratings on MGTS to 'ruA' from 'ruBBB+'. Standard & Poor's also affirmed its 'B+' long-term corporate credit rating on related entity Mobile TeleSystems (OJSC) (MTS), the leading Russian mobile operator. The outlook on all entities is stable. Credit rating details: JSFC «Sistema» («S&P», «?», Fitch, ?; Moody's, B1,) MTS OJSC («S&P», «B+», «Moody’s», «??3») MGTS OJSC («S&P», «?») MBRD JSCB (Fitch, B-) The outlook for all ratings is stable.