| March 26, 2004 international rating agency Fitch Ratings took a decision to upgrade Uralsvyazinform’s Senior Unsecured foreign currency rating to ‘BB-‘ from ‘B+’, Outlook Stable. The agency has affirmed Uralsvyazinform’s Short-term unsecured foreign currency rating at ‘B’.
The ratings reflect Uralsvyazinform’s strong market position in both fixed-line and mobile segments in Urals. Fitch notes that the company’s margins have been strong and believes the outlook is positive in this regard. The organic growth should be supported by increasing long distance traffic, tariff hikes on local services, new service rendering as well as an expanding mobile subscriber base. Fitch also notes the company has received a license to operate GSM 900/1800 standard in Sverdlovsk region and Ekaterinburg that will allow to preserve its averall leadership in this segment on the whole territory of Urals.
Fitch expects that in the mid- to long-term Uralsvyazinform will turn net free cash flow positive when the expansive capex programme into development of telecommunications in Urals runs its course.
More details on Uralsvyazinform’s ratings upgrade are available on Fitch Ratings web-site at www.fitchratings.com.
| 
.jpg){kind=small}
