On July 18, 2005, Standard & Poor's international rating agency raised the long-term credit rate of OJSC North-West Telecom from B- to B+, the forecast being “Stable”.    

Simultaneously, Standard & Poor’s raised the long-term credit rate of North-West Telecom from “ruBBB+” to “ru A +” by the Russian scale.

The higher rates are attributable to the improved NWT business position, which shows itself in:  

 - domination on the local and national communications market,

 - continuing improvement of the network quality,

 - positive trends in the regulated charge rates and cash substitutes for social benefits.  

Besides, the Standard & Poor's analysts note that “NWT has completely repaid all of its outstanding debts, while the company’s financial risks remain at one of the most controllable levels compared to similar companies. This enables the company to implement the necessary capital investment program and get prepared to the forthcoming restructuring of Russia’s telecommunication market.”

To Standard & Poor’s estimates, “NWT’s share in its key business segments, i.e. wired and long-distance telephone communication, remains sizeable at about 74% and 83%, respectively. Due to expansion and updating of its network, the digitization level has increased, and it has become possible to offer its customers diverse new services. Standard & Poor’s analysts believe that “NWT’s strategic goal, which is development of high-rated services, must help the company improve its profitability and earnings diversification.  

The “Stable” forecast for the NWT rates indicates the Standard & Poor’s expectations of the company’s ability to continue improvement of its network and services quality, while increasing its earnings. Provided that OJSC North-West Telecom continues working for its strategic targets of business process optimization and higher efficiency, Standard & Poor’s expects further improvement of controllability of the company’s financial risks and profitability.  

More detailed information can be found on the Standard & Poor’s website: https://www2.standardandpoors.com/servlet/Satellite?pagename=sp/sp_article/ArticleTemplate&c=sp_article&cid=1121362739096&s=&ig=&b=2&dct=22 or https://www.sandp.ru/article.php?pubid=1936&sec=pr

Originally, the CCC long-term credit rate was assigned to NWT in the late 2001, to be raised to the “B-“ level in 2003. Undergoing the rating assessment procedure is an integral part of the strategy of OJSC North-West Telecom aimed to improve   the Company’s informational transparency and investment attractiveness. OJSC North-West Telecom is planning further efforts to have its rates raised.