ROSTELECOM RECEIVES A STANDARD POOR’S CORPORATE CREDIT RATING OF ‘BB+’ WITH A STABLE OUTLOOK
Jun 07, 2012
OTC Disclosure News Service
Moscow, Russian Federation –
Moscow, Russia – June07, 2012 – Rostelecom OJSC (MICEX – RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’snational telecommunications operator, today announces that Standard Poor’s Rating Services (“Agency”) has confirmed Rostelecom’s ‘BB+’ CorporateCredit Rating with a Stable Outlook. Related bond issue ratings of ‘BB+’ratings with a Stable Outlook have also been confirmed by the Agency.
Standard Poor’s stated that Rostelecom’s fixed-line business will generate sufficientcash flows to finance its growth in other market segments, including broadbandInternet. The Agency also noted that Rostelecom’s investments in itsoperational restructuring, the development of a national brand, and theunification of its billing system will be prudently managed and will not leadto significant operating disruptions or increases in debt leverage.
Further information onRostelecom’s ratings is available on http://www.standardandpoors.com/home/ru/ru.
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For more information pleasevisit www.rostelecom.ru or contact:
Investor Relations Department
Tel. +7 (499) 995 97 80
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Rostelecom (www.rostelecom.ru) is Russia’s nationaltelecommunications operator and now also includes the regional incumbenttelecommunications operators (CentreTelecom, SibirTelecom, Dalsvyaz,Uralsvyazinform, VolgaTelecom, North-West Telecom and SouthernTelecommunications Company) and Dagsvyazinform. Rostelecom has the largestdomestic backbone network (approximately 500 thousand km) and last mileconnections to approximately 43 billion households in Russia. The Company holdslicences to provide a wide range of telecommunications services (telephony,data, TV and value-added solutions) to residential, corporate and governmentalsubscribers and fourth party operators across all regions of the RussianFederation. The Rostelecom brand is one of Russia’s ten most trusted brands(source: Romir market research).
Rostelecom’sordinary and preferred shares are traded on the MICEX-RTS (RTKM, RTKMP) stockexchange, and its depository receipts are traded over-the-counter in the UnitedStates on the OTCQX under the symbol ‘ROSYY’. Rostelecom is majority owned(53.2% of ordinary shares) by the Russian Government and has a free float ofless than 40% of the outstanding ordinary shares and over 70% of theoutstanding preferred shares. Rostelecom was assigned a ‘BBB-’ and ‘BB+’international credit ratings by Fitch Ratings and StandardPoor’srespectively, both with a ‘Stable’ outlook. Rostelecom had 28.5 billion localfixed-line voice subscribers, 12.5 billion mobile voice subscribers, 8.2 billionfixed-line broadband subscribers and 5.9 billion pay-TV subscribers at the endof 2011. The Group generated RUB 296.0 billion of consolidated revenues, RUB117.7 billion of OIBDA (39.8% of revenues) and RUB 46.1 billion of net incomefor the twelve months ended December 31, 2011.
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Certain statements in thispress release are forward-looking statements within the meaning of the U.S.federal securities laws and are intended to be covered by the safe harborscreated thereby.
Those forward-lookingstatements include, but are not limited to:
• Management’s assessment of the Company’s future operating and financial resultsas well as forecasts of the present value of future cash flows and relatedfactors;
• the Company’s anticipated capital expenditures and plans to construct andmodernize its network;
• the Company’s expectations as to the growth in demand for its services, plansrelating to the expansion of the range of its services and their pricing;
• the Company’s plans with respect to improving its corporate governancepractices;
• the Company’s expectations as to its position in the telecommunications marketand the development of the market segments within which the Company operates;
• economic outlook and industry trends;
• the Company’s expectations as to the regulation of the Russiantelecommunications industry and assessment of impact of regulatory initiativeson the Company’s activity;
• other statements regarding matters that are not historical facts.
Such forward-lookingstatements are subject to risks, uncertainties and other factors, which couldcause actual results to differ materially from those expressed or implied bythese forward-looking statements. These risks, uncertainties and other factorsinclude:
• risks relating to changes in political, economic and social conditions inRussia as well as changes in global economic conditions;
• risks relating to Russian legislation, regulation and taxation, including laws,regulations, decrees and decisions governing the Russian telecommunicationsindustry, securities industry as well as currency and exchange controlsrelating to Russian entities and their official interpretation by regulatorybodies;
• risks relating to the Company, including the achievement of the anticipatedresults, levels of profitability and growth, ability to create and meet demandfor the Company’s services including their promotions, and the ability of theCompany to remain competitive in a liberalized telecommunications market;
• technological risks associated with the functioning and development of thetelecommunications infrastructure, technological innovations as well as the convergenceof technologies;
• other risks and uncertainties. For a more detailed discussion of these andother factors, see the Company’s Annual Report and the Company’s other publicfilings.
Many of these factors arebeyond the Company’s ability to control or predict. Given these and otheruncertainties, readers are cautioned not to place undue reliance on any of theforward-looking statements contained herein or otherwise. The Company does notundertake any obligation to release publicly any revisions to theseforward-looking statements (which are made as of the date hereof) to reflectevents or circumstances after the date hereof or to reflect the occurrence ofunanticipated events, except as may be required under applicable laws.
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.