OREANDA-NEWS. Fitch Ratings has today affirmed OAO Dalsvyaz's ("Dalsvyaz") Issuer Default rating ("IDR") at 'B' with Stable Outlook and Short-term rating at 'B'.

The ratings reflect the company's strong market position as the incumbent provider of fixed-line telephony services in the Russian Far East. Dalsvyaz has the most developed backbone network and last-mile infrastructure in the region, and continues to dominate in the major segments of local and zonal telephony, and long-distance interconnect.

"Although Dalsvyaz achieved significant deleveraging in 2005 and H106, the acquisition of a 51% stake in Sakhatelecom will confront Dalsvyaz with a number of financial and operational challenges' says Nikolai Lukashevich, Director with Fitch's TMT team.