OREANDA-NEWS. Standard & Poor's Ratings Services said today it raised its long-term corporate credit rating on Russia-based telecommunications operator Central Telecommunications Co. (OJSC) (CTC) to 'B' from 'B-', reflecting the company's strengthening financial profile and improving operating performance. The outlook is stable.

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

"The upgrade reflects CTC's improving credit-protection measures, helped by increasing free cash flows, tightened cost control, drastically reduced spending, and robust EBITDA growth," said Standard & Poor's credit analyst Ivan Strougatski.

The ratings remain constrained, however, by the company's restricted financial flexibility and weak liquidity. They are also constrained by CTC's limited revenue diversification, with a prevailing reliance on traditional telephony; increasing competition, particularly in the fast-growing Moscow Oblast region; and uncertainty regarding further industry and regulatory reforms in Russia.