OREANDA-NEWS. December 16, 2010. Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian telecommunications operator VolgaTelecom (OJSC) to “BB” from “BB-“The rating agency also raised the Company’s national scale rating to “ruAA” from “ruAA-“. At the same time, the ratings were removed from CreditWatch, where they were placed with developing implications on June 21, 2010. The outlook is stable.

On November 20, 2010 the time of making claims by VolgaTelecom’s debt holders of early repayment of their debt due to the Company’s reorganization expired. As VolgaTelecom did not receive such claims, Standard & Poor's believes that this eliminates liquidity risks related to reorganization.

Standard & Poor's Ratings Services assesses VolgaTelecom’s liquidity as “adequate” based primarily on its low debt leverage and strong free cash flow generation.

The stable outlook reflects Standard & Poor's view that VolgaTelecom will continue its strong operating performance, generate positive free cash flow, and maintain an adequate liquidity position.

Standard & Poor's will withdraw the ratings on VolgaTelecom when the reorganization is finalized. On completion of the transaction, VolgaTelecom will cease to exist as a separate legal entity.