Standard & Poor's has increased the credit rating of LenSpetsSMU

13.12.2007

PRESS-RELEASE

Basing on the results of the annual procedure of credit rating actualization, international agency Standard & Poor's has resolved to increase the rating of LenSpetsSMU.

Having examined the results of the company development during 2007, as well as having analyzed its financial state in the conditions of the unfavorable situation at international capital markets, rating agency Standard & Poor's has announced the increase of the rating of LenSpetsSMU at the national scale from "ruA-" to "ruA", as well as has changed the outlook for the international scale from "stable" to "positive". The rating at the international scale remained at "B" level.

LenSpetsSMU remains the first and the only Russian construction company to have received and published its credit rating given by the largest and the most conservative international rating agency - Standard & Poor's.

The obtained rating - "B" - at the international scale reflects the ability to fulfill debt obligations in due time and in full volume.

In its press-release, S&P stresses out, that the increase of the national credit rating reflects the improvement of the credit quality of the company, accompanied by successes in the main economical activity, and the ability of LenSpetsSMU management to keep the positive changes in the mid-term perspective, and may become the basis of revision of the rating to the positive direction at the international scale as well.

Rating "ruA" at the national scale evidences that the company features moderate high ability to respond its debt liabilities in due time and in full amount relative to other Russian issuers.

Rating "ruA" at the national scale has also been given to two circulating issues of LenSpetsSMU bonds - of 01 series (amount 1.0 billion rubles) and 02 series (amount 1.5 billion rubles) which has positive influence on the liquidity of these issues at the secondary market.