OREANDA-NEWS. International rating agency Standard & Poor’s upgraded corporate governance rating for Centertelecom by Russian scale from 5.0 to 5.2, confirmed 5.0 rating on international scale, but due to a request of Centertelecom’s management agency recalled CGR of Centertelecom. When commenting the decision of Centertelecom’s management on refusal of CGR by Standard & Poor’s, the director general of Centertelecom Vaagn Martirosyan said: “We think that the research of company’s corporate governance rating results, conducted by the agency’s analysts does not fully reflect Centertelecom’s work on improvement of corporate procedures to polish them to world’s highest quality standards.”

To remind, Centertelecom is not the first company of Svyazinvest to reject S&P’s CGR – Rostelecom and Uralsvyazinform did that already. "Just like in those cases, we find this issue slightly negative and include this factor when estimating fair price, by adjusting the discount rate. However, CGR was upgraded before refusal, hence we save the estimation of Centertelecom’s shares and still recommend “BUY”, Veles Capital's experts conclude.