International rating agency, Standard & Poor’s reports that August 1 it has raised the corporate governance rating (CGR) of OJSC VolgaTelecom from CGR-4+ to CGR -5. The agency also lifted the Company’s Russian standard rating from CGR -4,8 to CGR -5.1.
According to agency analysts, “the increase in corporate governance rating reflects the improvement in IFRS presentation reporting periods, which have allowed the Company to publish its IFRS annual financial report prior to holding its annual shareholders meeting in 2006, and also to control improvements made in its management structure.”
In Standard & Poor’s estimation, among other positive changes made to the Company’s corporate management were the renewal and strengthening of its senior management team, along with improvements in internal control and reporting procedure.
As agency’s report stated, OJSC VolgaTelecom’s corporate governance advantages are high activity of the Board of Directors, reinforcement of its internal control system through establishing an internal audit department, active functioning of its investor relations service and a stable increase in dividend payments in recent years years.
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