OREANDA-NEWS  On 23 October Southern Telecommunications Company (STC) [(RTS: KUBN, KUBNP; MICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], No. 1 fixed-line operator in the South Federal District, announced, that international rating agency Standard & Poor’s affirmed the telecom company’s international long-term rating at B. In addition, the credit rating outlook was revised from positive to stable and the national scale rating was lowered from ruA to ruА-.

S&P analysts believe the company will manage to retain its steady business position and also its ability to generate stable cash flows without sharply increasing capital outlays. The possibility of teaming up with state-controlled lending institutions will offset the financial risks that the operator faces given the deteriorating environment on the global lending market.

More information on the operator’s credit rating upgrade is available at http://www.standardandpoors.ru/.