| Standard & Poor's Ratings Services said today it raised its long-term foreign currency corporate credit rating on related entity Moscow City Telephone Network (JSC) (MGTS) to "B" from "B-" and assigned its "B" local currency corporate credit rating to the company.
In addition, Standard & Poor's raised its Russia national scale corporate credit and senior unsecured debt ratings on MGTS to "ruA" from "ruBBB+". The outlook is stable.
S&P said, MGTS has reduced its debt burden and demonstrated steady although moderate revenue growth backed by above-inflation tariff increases and utilization of its new digital backbone network. The recent appointment of a new CEO, who previously successfully headed MTS, should further advance MGTS network modernization and deployment of new telecoms services, in conjunction with ongoing consolidation of alternative fixed-line operators jointly controlled by Sistema and MGTS in Moscow.
At the same time S&P raised its long-term corporate credit ratings on Russia-based diversified holding group AFK Sistema to "B" from "B-", reflecting an improvement in the group's liquidity and the solid performance of its telecommunications assets. The outlook is stable.
MGTS is controlled by the Sistema holding, which also controls mobile operator Mobile TeleSystems.
PJSC Moscow City Telephone Network is one of the biggest not only in Russia, but among the local wire telecommunications companies in Europe too. The Company's continual priority task is to provide quality telephone communication accessible to the millions of the Russia's capital-city inhabitants. The MGTS personnel of 20 000 persons supply services to over 4.2 million subscribers. The telephone density in Moscow conforms to the European standards - over 50 MGTS telephones per 100 metropolitan residents. There are about 600 MGTS telephone exchanges in operation, and their number increases year by. There are presently 18 000 pay stations available at the Company's public payphone network. To date, the MGTS share amounts to 80% in the Moscow fixed telecommunications market. The dynamic development of the Company is noted for its stable economic situation, prescheduled on-going income growth rate, and for the amount of provided services on the upgrade. The Central Office of PJSC MGTS is located in Moscow at 12, bdg. 3, Petrovskiy Boulevard, Moscow, Russia. The Company's Internet address is www.mgts.ru.
For further details, please approach the Department of
Information and Public Relations - PJSC MGTS.
Tel: +7 (095) 950 0623, fax: +7 (095) 950 0622,
E-mail: pressa@mgts.ru
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