Rostelecom OJSC: STANDARD & POOR CONFIRMS ROSTELECOM’S CORPORATE CREDIT RATING OF ‘BB+’ WITH A STABLE OUTLOOK

  Rostelecom OJSC: STANDARD & POOR CONFIRMS ROSTELECOM’S CORPORATE CREDIT
  RATING OF ‘BB+’ WITH A STABLE OUTLOOK

UK Regulatory Announcement

MOSCOW

STANDARD & POOR CONFIRMS ROSTELECOM’S CORPORATE CREDIT RATING OF ‘BB+’ WITH A
                                STABLE OUTLOOK

Moscow, Russia – March 31, 2013 – Rostelecom OJSC (MOEX - RTS: RTKM, RTKMP;
OTCQX: ROSYY), Russia’s national telecommunications operator, today announces
that Standard & Poor’s Rating Services (“Agency”) has confirmed Rostelecom’s
‘BB+’ Corporate Credit Rating with a Stable Outlook. Related bond issues with
ratings of ‘BB+’ with a Stable Outlook have also been confirmed by the Agency.

The Agency noted that Rostelecom’s stand-alone credit profile was upgraded by
one notch reflecting the Company`s improved liquidity position. However, this
improvement was eliminated by changes made by the Agency to its methodology,
which no longer incorporates any uplift provided by support offered to
government-related entities. As a result, the Company`s credit rating remained
intact.

Kai-Uwe Mehlhorn, Senior Vice-President and Chief Financial Officer,
commented: “We are delighted that the Agency has upgraded our stand-alone
credit profile to reflect the company`s enhanced liquidity position.”

Further information on Rostelecom’s ratings is available at
http://www.standardandpoors.com/home/ru/ru.

                                    * * *

For more information please visit www.rostelecom.ru or contact:

Investor Relations Department

Tel. +7 (499) 995 97 80

ir@rt.ru

                                    * * *

Rostelecom (www.rostelecom.ru)  is Russia’s largest national
telecommunications operator with presence in all Russian regions. The Group is
a universal operator and undisputable leader of broadband and pay-TV markets
in Russia with over 10.6 million fixed-line broadband subscribers and over 7.5
million pay-TV subscribers. The Group is also an important innovator that
provides solutions in the field of medicine, E-Government, cloud computing and
education.

Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by
Fitch Ratings and Standard & Poor’s respectively, both with a ‘Stable’
outlook. The Group generated RUB 325.7 billion of consolidated revenues, RUB
113.3 billion of OIBDA (34.8% of revenues) and RUB 24.1 billion of net income
for the 12 months ended December 31, 2013.

                                    * * *

Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and are intended to be covered
by the safe harbors created thereby.

Those forward-looking statements include, but are not limited to:

• Management’s assessment of the Company’s future operating and financial
results as well as forecasts of the present value of future cash flows and
related factors;

• the Company’s anticipated capital expenditures and plans to construct and
modernize its network;

• the Company’s expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their
pricing;

• the Company’s plans with respect to improving its corporate governance
practices;

• the Company’s expectations as to its position in the telecommunications
market and the development of the market segments within which the Company
operates;

• economic outlook and industry trends;

• the Company’s expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory initiatives
on the Company’s activity;

• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions in
Russia as well as changes in global economic conditions;

• risks relating to Russian legislation, regulation and taxation, including
laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;

• risks relating to the Company, including the achievement of the anticipated
results, levels of profitability and growth, ability to create and meet demand
for the Company’s services including their promotions, and the ability of the
Company to remain competitive in a liberalized telecommunications market;

• technological risks associated with the functioning and development of the
telecommunications infrastructure, technological innovations as well as the
convergence of technologies;

• other risks and uncertainties. For a more detailed discussion of these and
other factors, see the Company’s Annual Report and the Company’s other public
filings.

Many of these factors are beyond the Company’s ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or
otherwise. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements (which are made as of the
date hereof) to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as may be required
under applicable laws.

Contact:

Rostelecom OJSC
 
Press spacebar to pause and continue. Press esc to stop.