Moscow, February 22 2005.  International rating agency Fitch Ratings has assigned Center Telecom a national rating of BB (rus) with a stable outlook.  Fitch also assigned a BB (rus) rating with a stable outlook to the domestic bond issues of Center Telecom worth Rub 2 mln and 5,622,595,000 with maturities slated for 2005, 2006 and 2009, respectively.

Fitch Ratings believes that Center Telecom is exposed to risks associated with implementation of the company’s mid-term business plan.  The agency also factored into its rating assignment Center Telecom’s higher leverage than at other regional telecom operators in Russia.

Fitch pointed out that the ratings reflect the dominant impact of the core shareholder, Svyazinvest on the company’s decision-making process and Center Telecom’s leading position on the fixed line market in the territory of its operations in the Central federal district of Russia.  As an incumbent telecom operator, the company runs a public switched telecommunications network (PSTN) and holds strategic advantages such as extensive regional coverage and a large subscriber base.