OREANDA-NEWS. On June 6, 2007 Standard & Poor's Ratings Services placed its 'B' long-term corporate credit rating and 'ruBBB+' Russia national scale rating on "CenterTelecom" (OJSC) on CreditWatch with positive implications.
 
According to Standard&Poor’s credit analyst Lorenzo Sliusarev the Credit Watch placement reflects the company’s declining exposure to financial risk, strengthening liquidity, and continuing improvement of operating performance.
 
Standard&Poor’s experts consider that due to prudent containment of capital spending, increasing profit generation and resulting expansion of positive free operating cash flow CenterTelecom's financial leverage continues to decline. "Liquidity position has also notably improved as a result of successful refinancing efforts on the back of positive capital markets dynamics in Russia. The company’s strategic focus on cost cutting, expansion of profitability-accretive value added services, and continuing favorable regulatory and industry trends enhance profitability, as witnessed by its reported first quarter 2007 operating profit margin of 29%, in accordance with Russian GAAP"- said in the agency’s release.
 
The CreditWatch is expected to be resolved after the company’s release of audited 2006 IFRS results and following meeting of Standard&Poor’s analysts with the management of the company and detailed discussion of CenterTelecom's future business strategy and financial plans.