On January 22, 2008, Standard and Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Uralsvyazinform (OJSC). The outlook is stable.

As reported by the agency, ‘The rating is supported by Uralsvyazinform's solid and improving market position in its service area, expanding business diversification, and superior network quality. Uralsvyazinform's strategic focus on improving efficiency and cost control, along with moderating investments, continues to translate into stronger profitability and cash flow generation. The rating also takes into account the positive dynamics in Russia's telecommunications industry--helped by robust growth of GDP and disposable incomes - and an improving regulatory framework.

On the other hand, the rating is constrained by the company's financial risk profile, due to significant leverage and modest liquidity, with sizable short-term refinancing requirements. Moderate profitability, intense competition in the mobile segment, and the possible risks associated with ongoing industry and regulatory reform also limit the rating’.

Full text of press-release and rating rationale is available from Standard and Poor’s web-site and Ratings section at www.usi.ru/en/