On February 21, 2005 rating agency Standard & Poor’s assigned an ruBBB+ rating to North West Telecom based on Russia’s domestic scale.

As noted by S&P, in 2004 NWT maintained a modest level of investments in its network, as well as modest growth in debt leverage.  Thus, in 2004 and 2005 the ratio of total debt to EBITDA will remain below 2.0.  Positive factors include settlement of the previously unregulated debt to the Russian government within the frame of a credit facility from the Foreign Economic Trade Bank.  Also, analysts are forecasting a 20% rise in NWT’s topline and a slight improvement in operating and financial indicators as a result of two base fixed line operators in the Leningrad region and Republic of Komi being merged to NWT.

At the beginning of March the company intends to launch a bond on MICEX via public subscription at the rate of the first coupon.  Proceeds from the issue are to be allocated to finance capital investments and refinance debt obligations.

For the record, NWT’s third bonded loan worth Rub 3 bln was registered on December 28, 20004.  Term to maturity is 6 years with a call option available after 3 years and face value is Rub 1,000.  The arranger of the issue is Web Invest Bank, co-arranger is AKB Svyaz Bank and the financial consultant is ABK Investment Co. At present, the long-term credit rating of NWT is ruBBB+ based on the national scale and B- with a positive outlook on the international scale.