OREANDA-NEWS. May 7, 2010. Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern and North-Caucasian Federal Districts, reports that Standard & Poor's Ratings Services published the report on its credit action confirming its 'B' long-term term corporate credit rating on UTK with “Stable” outlook.

According to Standard & Poor's, the Company occupies strong regional incumbent position in traditional fixed-line telephony and continues prudent cost-cutting which leads to  improvements in UTK’s financial showing and strengthening of its profitability.

"Having passed a repayment peak in 2009, the Company has improved its debt maturity profile, with upcoming maturities equally spread over the next three years. UTK retains its positive free cash flow generation potential, which should support further gradual deleveraging”, - the report states.

The Stable outlook reflects expectation of the rating agency that UTK will maintain a dominant market position in its franchise area and continue proactive liquidity management and a conservative approach to investments.