Moscow – November 13, 2003 – Rostelecom (NYSE: ROS; RTS: RTKM), Russia’s national long-distance telecommunications operator, today welcomed the decision by Standard & Poor’s to upgrade Rostelecom’s long-term credit rating to «B» from «B-» with a positive outlook.

S&P commented in its report, “The rating action reflects Rostelecom’s gradual debt reduction; the effects of the recent change in the Russian interconnection regime; and, importantly, recent restructuring and elimination of any uncertainties in respect of the company's Yen-denominated debt to the Russian Ministry of Finance… The overall strong growth of the Russian telecom market and tangible results of management's efforts in cost reduction and securing Rostelecom’s dominant market position have further contributed to the improved credit standing of the company.”

S&P also commented on Rostelecom’s positive outlook: “The positive outlook reflects the
expectations that Rostelecom will further improve its capital structure thanks to positive cash flow generation and the sale of RTC-Leasing. The company is also expected to reach revenue growth above inflation, based on improving interconnection arrangements and active protection of its market position in the major telecommunications market of Moscow. An observed improvement in Rostelecom’s operating performance and liquidity position might lead to further improvement of the rating.”

Vladimir Androsik, CFO of Rostelecom, said: “We welcome S&P’s decision to raise Rostelecom’s credit rating as it recognizes the efforts made to improve the financial performance of the Company during the last 18 months. This news is undoubtedly positive for all the Company’s stakeholders, including shareholders, creditors, partners and clients.”



For further details please contact

Anna Kareva
Director for public and investor relations
Tel.: + 7 095 973 9920 Fax: + 7 095 787 2850 e-mail: kareva@hq.rt.ru

Certain statements in this press-release are “forward-looking statements” within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby.
These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
These risks include the risk of changes the Company’s operations and business prospects, the general financial and economic circumstances, relating to regulation of the Russian telecommunications industry and the Russian legislation; the competition and other risks.
For a more detailed discussion of these and other factors, see the Company’s Annual Report on Form 20-F for its most recently completed fiscal year and the Company’s other public filings with The U.S. Securities and Exchange Commission. Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, the Company cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise.
The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable the U.S. federal securities laws.

Rostelecom Headquarters
Address: 14, 1st Tverskaya-Yamskaya street, Moscow, 125047, Russia

Phone: +7 (095) 972–82–83
Fax: (095) 787–28–50
E-mail: rostelecom@nmc.rospac.ru