Standard & Poor’s Ratings Services has raised the long-term credit rating on JSC North-West Telecom from B+ to BB–, with a "Stable" forecast

At the same time, Standard & Poor's raised its long-term Russian national scale rating on NWT debt from ruA+ to ruAA–.

Simultaneously, Standard & Poor’s applied a ruAA– rating to the planned fourth bond series by the Company.

S&P’s analysis noted that the rating improvement is associated with the improved business positions of JSC North-West Telecom, as indicated by:

• the company’s dominant position in the traditional telephony market;
• improved operating efficiency;
• prudent financial policy; and
• improved debt structure.

According to Standard & Poor’s experts, North-West Telecom holds the leading positions in the key segments of the market for fixed communications: local and intra-zonal communication (76% and 90% respectively). By gradually improving and upgrading network infrastructure, North-West Telecom will be able to improve the availability of new services and to expand its range of clients including small-to-medium size business.

Standard & Poor’s analysts  say provision of broadband access to the Internet will be a key project of the Company near-term and will help improve operating profits and diversify the revenue structure.

In addition, the S&P analysts indicate that North-West Telecom is increasingly selective in its investment projects, focusing on their contribution to competitiveness and payback visibility.

The "Stable" forecast in North-West Telecom's scores reflects Standard & Poor’s expectations that the Company will pursue a prudent financial policy with a moderate level of debt liabilities, provided North-West Telecom continues to adhere to its strategic intentions aimed at increasing the efficiency and promoting new services. Standard & Poor’s also expects that the Company's business positions will be strengthened and that the revenue structure will become more diversified.

Vladimir Akulich, Chief Executive officer of JSC North-West Telecom, noted: "This further credit score improvement is a natural result for our Company confirming the correctness of corporate strategy. As for investors and credit companies this Standard & Poor’s decision will be another affirmation of North-West Telecom as a reliable and stable partner."

More detailed information can be found at the site of Standard & Poor’s https://www.standardandpoors.com

JSC North-West Telecom’s priority unsecured foreign currency debt is rated B+ by Fitch Ratings agency with a "Stable" forecast and its short-term rating in foreign currency is B.