Uralsvyazinform disadvantaged by competition, Standard & Poor’s says

The international rating agency decreased Uralsvyazinform’s long-term credit rating from ÂÂ- to Â+ and took it off their CreditWatch list. The telecommunications provider’s rating was placed on the list with Negative Rating Outlook on March 2, 2009. Now the company’s Rating Outlook is Stable.

‘The rating demotion was caused by our concerns over the way the company’s liquid assets are managed: we find it aggressive and unfit for ÂÂ- rating category,’ says Standard & Poor’s analyst Alexander Gryaznov.

‘Then, Uralsvyazinform’s rating is threatened by the business’s low liquidity figures, the need to control the growing expenses and to keep up with the net operating margin, fierce competition on the regional mobile communication market, and possible regulatory risks,’ Standard & Poor’s reports.

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