After a meeting with the company Standard and Poor's confirmed LenSpetsSMU’s rating as ‘B’, outlook ‘Stable’

24.12.2008

On 22 December 2008, after the meeting which was in LenSpetsSMU’ office on 5 November 2008, the international agency Standard and Poor’s officially notified LenSpetsSMU of their decision to keep the company’s rating at the level ‘B’ on the international scale, outlook ‘Stable’, and at the level ‘ruA’ on the national scale.

LenSpetsSMU reports that over the last months the rating agency has considerably intensified their control over the company’s financial and operational indicators and over the situation in the real estate market as well. A special attention in the company analysis has been paid to liquidity and dynamics of sales. The fact that LenSpetsSMU has not only annual, but also interim financial statements under the IFRS, has facilitated the rating agency’s work.

The international rating agency’s decision regarding LenSpetsSMU stands out from numerous downward revisions of Russian issuers’ ratings and outlooks. The recent decision on downgrading of the long-term and short-term credit ratings of the Russian Federation for its obligations in a foreign currency dated 08.12.2008 from «ВВВ +/А-2» down to «ВВВ/А-3» has not affected LenSpetsSMU’s rating.

Standard & Poor’s analytical reports are available here.

NOTE

LenSpetsSMU was the first and remains one of only two Russian construction companies which received and published credit ratings from the largest and most conservative international rating agency - Standard & Poor's.

The ‘B’ international scale rating means that the company has the capacity to meet its financial commitment on the obligations in full and in due time.

The ‘ruA’ national scale rating shows that the company is characterized by a moderately strong capacity to meet its financial commitments on the obligations in full and in due time, relative to that of other Russian issuers.

CONTACTS

Mikhail Dukhovny, Director of Corporate Communications Department

tel. (812) 348-21-25, email: dukhovny_m@lenspecsmu.ru

Viktor Vasenev, Deputy CFO

tel. (812) 348-09-95, email: vasenev_v@lenspecsmu.ru