OREANDA-NEWS. On 07 August 2009 Southern Telecommunications Company (UTK) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the largest fixed-line telecom operator in the Southern Federal District of the Russian Federation, announced that Moody’s Investor Services today reaffirmed its long-term international credit rating for UTK at B1, with a stable outlook.

Confirmation of the rating is attributable to expectations of the agency’s analysts that the company will stick to a reasonable deleveraging policy bring its equity structure in line with the long-term investment program. UTK’s strategy calls for focusing on the current competitive advantages and maintaining the operator’s positions on the intrazonal market and bolstering its leadership position on the broadband Internet market.

 “Moving forward, the competitive ability of the company’s business model will to a large extent depend on its technical progress by way of timely investments in infrastructure”, according to the agency’s report.  As pointed out by deputy general director of economics and finance (CFO) of UTK, Vyacheslav Kozelsky: “The company is fully aware of the need to make “correct” investments and is dramatically revising its investment policy.  As a matter of fact, at present we’re carrying out only highly efficient projects with payback periods of 2-3 years”.

 “The focus will also be on rapidly capturing a large segment of the broadband Internet market, working actively in the corporate business segment and providing telephone connectivity in newly constructed areas.  The main objective pursued by the company is to raise its cash flow as much as possible to facilitate deleveraging”.