OREANDA-NEWS. On October 09, 2008 Southern Telecommunications Company [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reported that Standard & Poors Rating Services affirmed its B long-term corporate credit rating on STC, reported the press-centre of UTK.

At the same time Standard & Poors revised the outlook to stable from positive and lowered the national scale rating to ruA- from ruA.

According to Standard & Poors, STC will retain a resilient business position and healthy cash flow generation, while capital-expenditure requirements remain moderate.

And continuing support from state-owned banks should enable the Company to manage financial risks, being aggravated due to the stiff deterioration in the global and Russian credit markets.