On March 2, 2009 the Standard & Poor’s rating agency affirmed North-West Telecom’s long-term international credit rating at ÂÂ-, forecast Stable. The national rating of North-West Telecom was affirmed at the previous level ruÀÀ-. Today, these are the highest ratings with the Stable forecast among interregional companies.

According to the agency’s analysts, the rating is support by the following factors:

- Strong market positions of the Company in the local access segment;

- Improved business efficiency;

- Improved network quality;

- Moderate debt load;

- Adequate liquidity level.

The experts identify such positive aspects in North-West Telecom’s business as further improvement in the Company’s revenue breakdown and a better business efficiency due to a greater developing of broadband Internet access and a tough cost saving. Thus, the EBITDA margin was equal to 40% in the first half of 2008 as against 36% in the first half of 2007. The total amount and duration of North-West Telecom’s debt are also better as compared with peers.

According to Venera Khusnutdinova, Chief Financial officer of North-West Telecom, “the confirmation of North-West Telecom’s credit rating at ÂÂ- is yet another evidence of the right choice and adequate implementation of the company’s strategy and the high credit quality of the Company. Today, this is one of the competitive advantages that will help us further consolidate our positions”.