OREANDA-NEWS. Standard & Poor's Ratings Services said today it raised its long-term corporate credit rating on Russia-based fixed-line telecommunications operator Southern Telecommunications Co. (OJSC) (STC) to 'B-' from 'CCC+', in light of the company's improving financial risk profile. The outlook is stable.

At the same time, Standard & Poor's raised its long-term Russia national scale rating on STC to 'ruBBB' from 'ruBB'.

"The upgrade reflects the company's improving liquidity and increasing debt-protection measures," said Standard & Poor's credit analyst Ivan Strougatski.

The ratings remain constrained, however, by STC's aggressive financial risk profile, with a heavy overall debt burden and constrained financial flexibility.

Limited revenue diversification, combined with the need to further improve operating efficiency, and uncertainty of further regulatory and industry reform, also weaken the company's credit profile.