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Svyazinvest

December 25, 2001

Standard & Poors assigns a B- and stable outlook to OJSC Uralsvyazinform

Standard & Poors has assigned a long-term B- credit rating and stable outlook to the local and foreign currency of OJSC Ualsvyazinform.  This is the same rating, which has also been assigned to OJSC Vimpelcom and OJSC Tatneft. 

 The following positive factors contributed to the rating:

·         OJSC Uralsvyazinform's monopoly market status;

·         the developed mobile service line being pursued by the company;

·         sufficiently advanced technical status of the network;

·         the ability to roll out value-added services.

The following negative factors contributed to the rating:

·         the impact of continuous capital investments on the company's financial standing;

·         an unfavorable regulatory climate.

The current rating of OJSC is based on an independent analysis of the company's financials and does not include any factors related to the proposed mega-regional merger, where the core company will be Uralsvyazinform.  The rating will be reviewed after the merger is complete and may be revised at that time.

 

 

 

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