On 4th October 2004 the international rating agency Standard & Poor’s assigned the corporate governance score 5+ to OJSC North-West Telecom (according to the Russian national scale – 5.9).
In the framework of the rating revision, analysts of the agency carried out an analysis of the changes taking place in the Company. St & P looked through all documents characterizing the corporate management practice were studied, and a number of meetings took place with the management and independent directors of OJSC North-West Telecom, auditors, independent analysts and shareholders.
The Corporate Governance Score of OJSC NWT is an integral indicator including the following components:
- ownership structure and external influence – 5.5;
- rights of shareholders and relations with financially interested parties – 7.0;
- financial transparency, information disclosure and audit – 6.3;
- structure and efficiency of the work of the Board of Directors – 4.8;
According to analysts of Standard & Poor’s, the corporate management system of NWT is rapidly developing from the moment of affiliation of eight other regional telecommunication companies with it in 2002, which is facilitated by positive initiatives of NWT’s manager and shareholders.
The corporate management rating of the company has been also influenced by changes in the analytical methodology of Standard & Poor's, which is now paying more attention to the level of independent control over the auditing process, as well as independence and efficiency of the Board of Directors activity. Methodological changes take into account the development of the world practice of corporate management and the higher interest of investors to corporate governance problems.
Commenting on the decision of the agency, Deputy General Manager - Corporate Governance Director of OJSC North-West Telecom Nikolay Bredkov noted: “The Company is planning to continue the work aimed at improving the quality of corporate governance, growth of capitalization and improvement of the investment attractiveness of OJSC North-West Telecom.”