S&P upgrades Central Telecommunications

Standard & Poor's said it raised the long-term corporate credit rating on Central Telecommunications Co. (OJSC) to BB from BB- and the national scale rating to ruAA from ruAA-, and removed them from CreditWatch, where they were placed with developing implications on June 28.

The outlook is stable.

The actions reflect the improvement in the company's financial profile and its liquidity was affirmed as adequate, according to the agency.

The risk of early repayment claims from the company's creditors was eliminated and the company managed to decrease its reliance on short-term debt this year, the agency noted.

As of June 30, the ratio of debt to EBITDA was 0.9x, a considerable improvement from 1.7x a year ago, S&P said.

Ratings are constrained by the company's exposure to Russia's weak capital markets, limited revenue diversity and increasing competition in the most lucrative areas, the agency said.

Ratings are supported by its resilient market share, vast network in European Russia's central region and ownership of last-mile access to 6.7 million customers, according to S&P.

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