S&P drops VolgaTelecom

Standard & Poor's said it lowered its corporate governance score on VolgaTelecom OJSC to CGS-4+ from CGS-5.

At the same time, S&P said it lowered its Russia national-scale CGS on the company to CGS-4.8 from CGS-5.1.

The agency said the downgrade primarily reflects the increased influence of the controlling shareholder Svyazinvest, a government-controlled holding company, over VolgaTelecom's strategic decision-making.

The rating action is also driven by the ongoing delays in producing IFRS financials and concerns over the company's competitive practices in the internet segment, S&P added.

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