International rating agency Standard & Poor’s (S&P) has published the results of research of information transparency among Russian companies in 2010.

The average index of information transparency of 90 largest Russian public companies has grown by 1.7 percent and has been approximately 57.5%. The group of 76 companies, which were included into the research both in 2009 and in 2010, had the index of approximately 60% against the last year’s 58%.

The analysts have observed the positive dynamics of JSC “Moscow United Electric Grid Company”, which “noticeably improves its transparency two years on end: the indicator of MOESK has grown almost by 20 points since 2008”, the research says.

The information transparency is one of the essential factors influencing the investment appeal of the company, and one of the important elements of corporate governance. The research of this year, as well as previous ones, shows that the overwhelming share of the cumulative market capitalization is typical of the companies with a high level of transparency, i.e. the openness of the company has positive influence on its market capitalization as a rule.

JSC “MOESK” is going to keep up with a high level of information transparency and disclosure in the further. The Company meets the requirements of the market regulators in full, publishes quarterly reports under international and Russian standards in due time, holds telephone conferences for investors and analysts. The special section has been created in the Company’s website.

Information:

The published research of information transparency is a joint analytical project of Standard & Poor’s and CEFRD (Center of Economic and Financial Researches and Developments). The research uses only the information available in public sources - annual reports, websites and the statements submitted to regulators. The basis of the methodology developed by Standard & Poor’s consists in the principle of full and timely public disclosure of the information essential for investors. The questionnaire of the research consists of 110 items grouped in three blocks: property structure and rights of shareholders, financial and operations information, membership and work procedures of board of directors and management.

We would like to single out a number of power companies, mainly JSC “UES FGC”; IDGC Holding, OJSC; IDGC of Centre and Volga Region, JSC; JSC “MOESK” and JSC “Kvadra” (earlier known as JSC “TGC-4”), which have improved their indices by 10 and more points. We should especially point out MOESK, which noticeably improves its transparency two years on end: the indicator of MOESK has grown almost by 20 points since 2008.